The Johnnic group says it has completed its restructuring with the recent disposal of its remaining stake in South African Breweries and has turned R4 billion debt into R2 billion in cash resources.
It will now concentrate on its e-Ventures division, a R240 million foray into Internet business.
Following its restructure, Johnnic Holdings holds stakes in M-Cell, which controls MTN, in non-core property assets, and in Johnnic Communications, which is in essence the old Omni Media Corporations. Johnnic Communications will in turn own the newspaper, books, music and filmed entertainment divisions. It will also own another stake in M-Cell and 100% of Johnnic e-Ventures.
Fundamental to the Internet strategy, says newly appointed e-Ventures chief executive Neil Jacobsohn, is financial content business I-Net Bridge, of which he was CEO. Dimension Data`s 25% stake in I-Net Bridge was acquired by Johnnic for an undisclosed amount that Jacobsohn says was substantial but fair.
"They were reluctant sellers initially," he says. "But I-Net is central to Johnnic and not that vital to DiData."
Johnnic now holds an effective 62.5% of I-Net Bridge, 37.5% indirectly through its publishing interests TML and BDFM.
Other Internet assets include the recently acquired Ananzi search engine, which is to be re-launched next month on a new technology platform, and 20% in home loan site BondNet. Several publications in the Johnnic newspaper division also have established online presences, notably the Sunday Times, Business Day and the Financial Mail.
These are to be aggregated in a common consumer hub by mid-year, without abandoning the established brands. "We have a lot of sites but they are all over the Internet space," says group CEO Paul Edwards. "We want to bring them together in a coherent whole and prevent duplication of infrastructure."
e-Ventures is also to serve as an incubator for new Internet plays hatched within the company and partnerships with outside companies. But Johnnic is quick to note that it will not throw money at anything that moves. "We are going to select businesses that have a very real prospect of success," says Jacobsohn.
In the immediate future are wireless applications, which Jacobsohn promises will be unveiled within weeks. The exclusivebooks.com site is to be re-launched soon, after being taken down for "renovations" following its poor initial welcome.
Jacobsohn also hints at a major business-to-business e-commerce launch within six months. "It is a trade portal, it is big and it involves an international partner," he says. "That is all we can reveal."
Possibilities, such as an offshore listing for cellphone short message service mtnsms.com, have not been eliminated.
However, Edwards says the dial-up access market is one area Johnnic is firmly uninterested in. "After deregulation, when things like free access becomes possible, [dial-up] will see massive growth," he says. "Right now it is a small market and the infrastructure is expensive."
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