Primedia sell Chiefs shares

2010-09-21 19:43

Johannesburg - Leading Premier Soccer League Kaizer Chiefs have bought back the 40% equity shares held by Primedia for the past 13 years.

In making the announcement on Tuesday Kaizer Chiefs chairman Kaizer Motaung stressed, “it was business as usual” For the club he launched in 1970 and that has a fan base of about 14 million countrywide.

Primedia bought the 40% stake in the country's top soccer club in 1997 for R40m.

Both parties stressed the split was amiable. “This is not like a divorce, it is more of a re-alignment for the two companies. In business some things work and some don't. Primedia decided to focus on the core business. But we are still doing business with one of Primendia's subsidiaries called Signet a sponsorship and commercial venture. We will continue to work together in areas where our respective business share a mutual interest,” stated Motaung.

He said Chiefs had bought back the 40% shares but declined to reveal how much he had paid for them. “The amount we paid for the shares is undisclosed as part of the agreement between the two parties.”

Motaung added that the deal would not impact negatively on Chiefs who are rated as one of the most popular clubs in the country.

“It will not affect Chiefs financially or in the way we run our club. We pride ourselves on the professional way we run our club and nothing changes. We will continue to strive to make Chiefs the number one club in the country. This new deal will not affect the running of Chiefs on or off the field in the slightest.”

Motaung also said the media and entertainment group had been a good partner to Chiefs and that they had enjoyed a good relationship.

Kuben Pillay, Group CEO of Primedia said in a statement his company has had a sound relationship with Chiefs for many years. But he said: “We have reached the stage, consistent with several non-core disposals over the last year, of focusing on our core competencies and areas of expertise. In line with such core competence, Primedia will continue to offer to serve Chiefs in its commercial ventures.”