Manyi’s company, Lodidolox Management, is acquiring TV channel ANN7 for R300 million and The New Age newspaper for R150 million, following an agreement with Oakbay Investments.
On Monday, Manyi says he will now ensure the media outlets reach their full potential “that report the truth”.
The deal was made through “vendor finance” and it appears the Guptas will retain a stake in the companies.
Vendor finance is a form of lending in which a company lends money to be used by the borrower to buy the vendor’s products or property.
The vendor often takes shares in the borrowing company.
Oakbay Investments said the deal was expected to be concluded over the next few weeks, and that it would save the jobs of 7500 employees.
“The sale will also allow the shareholder the time to focus on clearing its name in the face of unfounded media allegations,” the company said.
VENDOR FINANCE: Controversial Gupta family
Manyi, a staunch supporter of President Jacob Zuma, said there was nothing shady about vendor finance: “...I am particularly impressed that the shareholders of Oakbay have agreed to do a vendor financing at acceptable terms as part of their commitment to transformation and to expedite the transaction.”
The controversial Gupta family, who are at the centre of state capture allegations, have other business interests in mining, hospitality, energy and information technology (IT).
The Guptas were forced to seek services of a foreign bank, Bank of Baroda, last year after South Africa’s four major banks closed all accounts of their companies. Bank of Baroda has since ceased business with companies owned by the politically exposed family.