Independent News and Media, the country’s largest newspaper group, may be up for sale. Of course, the first question that gets raised when these kind of things happen, which they don’t really, is are there politically connected buyers lining up to bid for the group?

The Independent Newspaper and Media (INM) stable consists of some of South Africa’s largest broadsheet newspaper like The Star, The Argus, Cape Times and Sunday Independent.

Cyril Ramaphosa’s Shanduka Group and Iqbal Survé’s Sekunjalo Investments were already named by the Financial Times as likely buyers of the titles, although there had been several expressions of interest from other parties.

Dr Iqbal Survé, the Founder and Chairman of the Sekunjalo Group, said yesterday it was “not the policy of myself, or Sekunjalo group, or its holding company to comment on any speculation.”

Shanduka Group CEO Phuti Mahanyele denied they were investing in INM’s South African assets. Shanduka is a leading black owned and managed investment company established in 2001.

“We are not looking at an acquisition of Independent News and Media. Perhaps there might be a possibility that a subsidiary might be…. But I can’t make any comment.” Business Day quoted her as saying.

Business Day also quoted some interesting numbers:

In the 2011 financial year, its (INM) South African operating costs were tightly contained and rose by only 1,7%. Operating profits fell by €5,9m to €37,6m. Total revenue fell 10,9% to €558m last year.

The group had a net debt of €426,8m compared with €473,6m in 2010. Its operating profit declined 8,6% to €75,5m.

Professor Anton Harber, Caxton professor of journalism at Wits University, said assets up for sale would be “the best news we have heard in this industry for years.”

He continued:

The South African newspapers have had to carry the burden of the parent body’s debt and as a result the newspapers they leave behind are generally a shadow of what they were a decade ago.

Hopefully there’ll be new owners who actually care about the quality of our newspapers. Every owner will come with their own politics. The question is whether they will understand and respect what newspapers can and should do.

An INM spokesperson reportedly told the Financial Times it:

…continues to assess a range of strategic options to deleverage its balance sheet. These include cost reduction and productivity initiatives progressing well. No divestment decisions have been taken by the board.

At the time of publishing, 2oceansVibe Media was unable to get comment from the Independent Group, and Tony Howard, INM’s chief executive in South Africa, was not available to comment when pressed by Business Day.

[Source: BusinessDay]