On Monday, Eyewitness News reported that Lodidox, a company owned by Mzwanele Manyi has bought Gupta-owned ANN7 and The New Age for R450 million.
Oakbay Investments made the announcement this morning, saying that the sale is part of its commitment to preserve jobs and provide certainty to over 7 500 employees.
Gia Nicolaides, EWN reporter reports that Oakbay decided to go ahead with the sale to preserve jobs. Nicolaides adds that she spoke with Manyi earlier, who said he had battled to secure financing for the deal.
He (Manyi) said he did go to the Industrial Development Corporation (IDC) he was sending back and forth a number of documents and it just wasn't happening and so he decided to go through a vendor financing.— Gia Nicolaides, EWN reporter
Nicolaides explains that Manyi presented the Guptas with a good and aggressive business plan which he will pay back over a period of time.
She reports that Manyi told her the High Court ruling on Friday, involving former finance minister, Pravin Gordhan, gave him a boost of confidence that he isn't dealing with outlaws.
The High Court in Pretoria has dismissed the former finance minister Pravin Gordhan's application for a declaratory order which argued that Gordhan did not have the power to intervene in the relationship between the banks and the Guptas.
He wants to grow the ANN7 and The New Age saying it is going to be a big media agency and they are going to report with objectivity going forward.— Gia Nicolaides, EWN reporter
He said that this is definitely not a front as some have suggested says Nicolaides.
Listen to the full report here: