Media24 halts job cuts, newspaper closures
Fate of 400 hangs in balance
The transaction and retrenchments have been paused until Media24 receives approval from competition authorities.
In a stunning reversal, South African media group Media24 has halted plans to close several print titles and dismiss employees, pending regulatory approval for the planned sale of its distribution business On the Dot to Novus.
In June, Moneyweb revealed that Media24 had decided to close the print editions of Beeld, Rapport, City Press, Daily Sun and Soccer Laduma, as well as the digital editions of Volksblad and Die Burger Oos-Kaap and the digital hub SNL24 before September. This would have led to job cuts of around 400 people.
Novus is one of southern Africa’s most prominent print, publishing and packaging groups. It has a long-standing relationship with Media24 and prints all of its newspapers.
Media24 has now confirmed that it will not implement retrenchments - or newspaper closures - until the Competition Commission approves its proposed sale of On the Dot and several community newspapers to Novus.
Possible alternative solutions
Ishmet Davidson, CEO of Media24, said: “It never was our intention to do so before approval from the relevant authorities since the sale of On the Dot is a direct consequence of our intention to close the affected titles. However, it is important to note that this undertaking does not include ceasing the Section 189 consultation process related to the affected newspaper titles. As we have said on numerous occasions, we intend to comply with the relevant regulatory and statutory requirements".
Moneyweb can confirm that Media24 has not filed a merger application with the Competition Commission to date. The company has also not informed staff that the newspapers will not be closed and no one will be retrenched until the competition authorities approve the transaction.
A merger review by the Competition Commission could be lengthy, especially if a third party opposes it.
Capital Newspapers and Caxton indicated in widely placed press advertisements two weeks ago that there should be no early closure of Media24 newspaper titles until the merger transaction comprising the sale of On the Dot to Novus and the linked title closures have been approved in their entirety by the competition authorities. This would signal a reprieve for the press and allow Caxton and Capital Newspapers to oppose the proposed transaction.
Moneyweb also had sight of correspondence from the trade union Solidarity to Media 24, which, in part, said: “We have been informed that Caxton and CTP Publishers and Printers Limited have allegedly made a commercial offer to yourselves regarding possible alternative solutions vis-à-vis the alleged substantive operational reasons proffered by Media24 which might lead to retrenchment".
It is alleged that the offer might lead to retrenchments being prevented.
Legal interventions
“Whilst we are not part of this discussion and will not even attempt to dabble in commercial negotiation processes between the parties, we deem it in the utmost interest of employees that any alternatives to a retrenchment process and possible retrenchments be properly ventilated prior to the parties engaging in said retrenchment process," Solidarity said.
"We accordingly demand from you an undertaking that you will not proceed with the intended retrenchment process while the commercial negotiation processes between the parties have not been finalised and while the parties have not finalised legal action against each other regarding the aforementioned commercial negotiation process.”
Solidarity also said it has instructed its legal team to consider possible legal interventions.
-MONEYWEB
In June, Moneyweb revealed that Media24 had decided to close the print editions of Beeld, Rapport, City Press, Daily Sun and Soccer Laduma, as well as the digital editions of Volksblad and Die Burger Oos-Kaap and the digital hub SNL24 before September. This would have led to job cuts of around 400 people.
Novus is one of southern Africa’s most prominent print, publishing and packaging groups. It has a long-standing relationship with Media24 and prints all of its newspapers.
Media24 has now confirmed that it will not implement retrenchments - or newspaper closures - until the Competition Commission approves its proposed sale of On the Dot and several community newspapers to Novus.
Possible alternative solutions
Ishmet Davidson, CEO of Media24, said: “It never was our intention to do so before approval from the relevant authorities since the sale of On the Dot is a direct consequence of our intention to close the affected titles. However, it is important to note that this undertaking does not include ceasing the Section 189 consultation process related to the affected newspaper titles. As we have said on numerous occasions, we intend to comply with the relevant regulatory and statutory requirements".
Moneyweb can confirm that Media24 has not filed a merger application with the Competition Commission to date. The company has also not informed staff that the newspapers will not be closed and no one will be retrenched until the competition authorities approve the transaction.
A merger review by the Competition Commission could be lengthy, especially if a third party opposes it.
Capital Newspapers and Caxton indicated in widely placed press advertisements two weeks ago that there should be no early closure of Media24 newspaper titles until the merger transaction comprising the sale of On the Dot to Novus and the linked title closures have been approved in their entirety by the competition authorities. This would signal a reprieve for the press and allow Caxton and Capital Newspapers to oppose the proposed transaction.
Moneyweb also had sight of correspondence from the trade union Solidarity to Media 24, which, in part, said: “We have been informed that Caxton and CTP Publishers and Printers Limited have allegedly made a commercial offer to yourselves regarding possible alternative solutions vis-à-vis the alleged substantive operational reasons proffered by Media24 which might lead to retrenchment".
It is alleged that the offer might lead to retrenchments being prevented.
Legal interventions
“Whilst we are not part of this discussion and will not even attempt to dabble in commercial negotiation processes between the parties, we deem it in the utmost interest of employees that any alternatives to a retrenchment process and possible retrenchments be properly ventilated prior to the parties engaging in said retrenchment process," Solidarity said.
"We accordingly demand from you an undertaking that you will not proceed with the intended retrenchment process while the commercial negotiation processes between the parties have not been finalised and while the parties have not finalised legal action against each other regarding the aforementioned commercial negotiation process.”
Solidarity also said it has instructed its legal team to consider possible legal interventions.
-MONEYWEB
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