TV3 Ghana sale nears completion

The sale of 90% stakes of TV3 Network, one of Ghana’s private TV station to Media General Ltd, an investment holding company in Ghana, will in a couple of months be completed, owners have said.

According to Media Prima Bhd, group owner of TV3, under its subsidiary, Gama Media International (BVI), the sale is on track and it is waiting for an approval from Ghanaian authorities.

“We hope to complete the disposal by third quarter of this year because we need to obtain approval from the local authority in Ghana”, Datuk Amrin Awaluddin, Media Prima Managing Director told the Business Times in Malaysia on February 23, 2011.

Early January this year, news reports from Malaysia said owners of GAMA Media, the Ghana subsidiary and managers of TV3 Ghana has entered into a sale purchase agreement to divest 90% equity interest in TV3 to Media General Ghana Ltd., for RM8.63 million (Malaysian Ringgits), which is approximately $2.8 million.

Media Prima said in its filing to the Bursa Malaysia, an exchange holding company which operates a fully integrated exchange, that the divestment was in line with the group’s strategy to focus on domestic operations.

Meanwhile, in December 2009 Media Prima indicated that it was looking for other options apart from an earlier announced proposal for an initial pubic offer (IPO) on the Ghana Stock Exchange to raise additional capital.

Media Prima said then that it was looking for the options to raise funds as a result of what it described as “unfavourable market conditions.”

The company said it needed the money to expand its operations in Ghana, replace obsolete equipment and train staff to do better programmes.

By Emmanuel K. Dogbevi & Ekow Quandzie