The obsession over minority shareholders undermines the actual work being done to keep the business alive, protect local jobs, and defend media diversity to ensure South Africa retains an independent media voice, said Sekunjalo Group CEO Lucien Jacobs.
Image: Armand Hough / Independent Newspapers
Sekunjalo Group Chief Executive Officer (CEO) Lucien Jacobs has come out strongly to clarify the ownership and financial reality of Independent Media, revealing that the group’s total funding exposure to the media house now exceeds R5.5 billion.
Jacobs slammed what he described as a "disinformation campaign" by detractors who consistently focus on minority shareholders, such as the Public Investment Corporation (PIC) and the Southern African Clothing and Textile Workers Union (SACTWU). The CEO pointed out that while these entities are endlessly referenced by politicians, commentators, and activists, neither party has materially supported the business when it needed them most.
Setting the historical record straight, Jacobs detailed the financial trajectory of the company since its acquisition from the Irish Independent Group in August 2013 for R2 billion. At the time of the purchase, the Sekunjalo Consortium invested R1.15 billion, while the PIC put in R880 million and SACTWU contributed R150 million.
However, Jacobs emphasised that since 2015, Sekunjalo has stood virtually alone in keeping the company afloat. Over the last eight years, while other shareholders sat on the sidelines, the Sekunjalo Consortium poured an additional R1.8 billion into the business, excluding interest. When interest is factored in, that specific investment sits close to R2.5 billion.
"Who paid when revenues declined? Sekunjalo," Jacobs stated. "Who funded the business during economic downturns? Sekunjalo. Who ensured journalists continued receiving salaries? Sekunjalo. Who kept newspapers on the streets? Sekunjalo."
The group's commitment was highlighted just two weeks ago with a fresh capital injection of R20 million into the media company.
According to Jacobs, the cumulative capital injected by the Sekunjalo Consortium since the original 2013 acquisition is close to R3 billion excluding interest. When taking into account interest and associated funding costs, the total financial exposure surpasses R5.5 billion.
Jacobs concluded by saying that the obsession over minority shareholders undermines the actual work being done to keep the business alive, protect local jobs, and defend media diversity to ensure South Africa retains an independent media voice.