The Gupta family’s Oakbay Investments has stated that a firm owned by Mzwanele Manyi has bought Gupta-owned ANN7 and The New Age.
According to a report by Fin24, Manyi’s Lodidox bought ANN7 (Infinity Media) for R300 million and The New Age (TNA Media) for R150 million.
The deal is set to be concluded over the coming weeks, subject to regulatory requirements.
“The sale is part of Oakbay’s commitment to preserve jobs and provide certainty to over 7,500 hard-working employees throughout the group and to safeguard the inherent value of the businesses in which they work,” said Oakbay.
“Oakbay believes that both businesses and their employees will have the bright and prosperous future they deserve. The sale will also allow the shareholder the time to focus on clearing its name in the face of unfounded media allegations.”
Manyi said he was “delighted” to have reached an agreement with Oakbay and looked forward to completing the deal.
“These are two strong businesses which are full of potential and can become an increasingly important and relevant part of the South African media landscape.”
The sale comes after Gupta-owned companies have had their local bank accounts closed, while many high-profile private companies have parted ways with the family’s businesses.
Several major tech companies have also been accused of working with the Guptas to secure big government contracts, giving the family large kickbacks for their assistance.
A major email leak containing correspondence between the Guptas and government officials and politically-connected individuals also recently came to light – placing more pressure on companies and the government to cut ties with the family.