PRESS STATEMENT BY SAPA BOARD OF DIRECTORS

Further to its press statement dated September 15, 2014, the board of directors of Sapa met last week and confirmed that the decision, taken last September and by the members' AGM on 27 November 2014, to wind up the news agency as a non-profit company must now be implemented.

Nkonki Incorporated, an independent firm of auditors and financial advisors, has been appointed as its financial advisors to assist and guide Sapa through the wind up process. As noted in the earlier announcement, three suitable parties - namely Gallo Images, KMM Review Publishers and Sekunjalo Investments Holdings - had expressed their interest.

In the period since September, the parties had each presented their proposals for the establishment of a commercially based content generating and syndication service business and at last week's meeting provided updates on their original proposals. Nkonki is evaluating these proposals.

The board, through Nkonki, has now entered a process of calling for bids for the assets of Sapa.

The news agency's Chair, Minette Ferreira emphasised "that Sapa as a special category non-profit company could not be sold off".

"After the disposal of the assets the company will be liquidated and its operations will cease on March 31, 2015," said Ferreira.

Ferreira reiterated "that the Board meeting also underlined its commitment to ensuring the interests of all Sapa employees were correctly and meticulously attended to, as well as seeking where possible to maximise opportunities for these staffers, either with whatever new company was established, or if possible, elsewhere within the media industry."

"In addition, current subscribers would in due course be briefed on the plans and would be approached directly by the operators of the new syndication business."

Statement issued by Minette Ferreira on behalf of the Sapa Board of Directors, February 5 2015

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