The Gupta family has sold its media companies ANN7 and The New Age to the man who has been publicly defending them, Mzwanele “Jimmy” Manyi.
Manyi is buying The New Age for R150 million and ANN7 for R300 million through a vendor financing agreement.
According Sikonathi Mantshantsha, Deputy Editor of Financial Mail, a vendor financing agreement means that the Guptas have loaned Manyi the money to buy their companies.
This is a deal where the owner of the asset is so eager to sell that he will even lend you his own money and you take absolutely no risk whatsoever...— Sikonathi Mantshantsha, 'Financial Mail' Deputy Editor
Speaking to CapeTalk's Koketso Sachane, Manyi said he noticed how everyone had an opinion on how good or bad ANN7 was, meaning the station was growing its viewership.
How do you form an opinion on something you have not seen? In reality, I think the viewership of ANN7 is really growing.— Mzwanele “Jimmy” Manyi, New owner of ANN7 and TNA
Sam Sole, Senior Investigative Journalist at amaBhungane, says it is obvious that Manyi is confident that he will be able to go to the banks and allow these companies to continue to trade.
Sole said ANN7 was evaluated at between R400 and R500 million, but the Guptas sold it for R300 million, which raised suspicion.
He [Mayni] is not putting up any of his money, the same management is staying in place. Essentially, he is just a figure head that will allow them to get a new bank account and to extract money for the company.— Sam Sole, amaBhungane Senior Investigative Journalist
Mantshantsha says the banks are not stupid and we could see them closing down some of Manyi's account.
He is going to learn that not even his aggressive business plan is going to get him new bank accounts.— Sikonathi Mantshantsha, 'Financial Mail' Deputy Editor
To hear more of this interview, listen below:
This article first appeared on 702 : Jimmy Manyi will learn banks aren't stupid - Mantshantsha