Market speculation is rife that wireless applications service provider Exactmobile is in the process of being sold to Primedia.
Neither company would confirm the speculation.
"It`s an open secret the transaction is going down, and many players in the wireless applications services market know this," a source says.
However, Exactmobile spokesman Gavin Penkin says the company has not signed a contract of sale with Primedia, adding: "We do not comment on rumours and market speculation."
While Ferdie Gazendam, CEO of Primedia`s content division, would not comment on whether the transaction is in the pipeline, he did say: "We have made it clear the mobile content business is of interest to Primedia."
Aggressive expansion
As part of an expansion strategy, Primedia recently announced the placement of R150 million of perpetual preference shares. This was followed by the completion of three acquisitions amounting to R40 million, which, it said, would bolster existing businesses, as well as further diversify its media base.
One of the acquisitions was locally-based sports portal 365 Digital, bought by Primedia`s iafrica.com, which the group envisages will "more than double" iafrica.com`s profitability in the 2007 fiscal year.
It is likely the group is seeking further acquisition targets. "We are also busy with a number of larger and equally exciting transactions and we intend to announce these either prior to or at the time of our year-end results," Primedia CEO William Kirsh said in a statement early last month. The company`s year-end was in June.
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