Gupta Family Had A R600m Offer For Media Assets

But the Guptas instead chose to hand their interests to Manyi in a vendor financing deal.
Indian businessmen, Ajay Gupta and younger brother Atul Gupta. Photo by Gallo Images/Business Day/Martin Rhodes
Indian businessmen, Ajay Gupta and younger brother Atul Gupta. Photo by Gallo Images/Business Day/Martin Rhodes
Gallo Images via Getty Images

Questions are being raised as to why the Guptas sold their media empire to Mzwanele Manyi when they had a better offer from someone else.

City Press reported that four days before selling their TV channel and newspaper to Manyi, the Guptas received an offer to purchase their media empire for R600m.

The consortium wishing to buy the Guptas' Infinity Media were reportedly ready to give them 70% of the asking price in cash and the remaining 30% in shares.

But, instead, the Guptas chose to hand their interests to Manyi in a vendor financing deal, by which Manyi has to repay them on terms that he has said are "acceptable".

The offer, a copy of which City Press says it has obtained, states that Southern Star Mega Investors Group would deposit the money into the account of an "escrow agent to hold for a period of 90 days", after which due diligence procedures and re-employment arrangements for staff would be conducted. This while Infinity's net asset value would be determined.

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