Anant Singh, the chief executive of Videovision, the film production and distribution group, has sold its Kagiso Media stake. Singh said it would plough the proceeds into the development of its Durban film studio and a movie based on Nelson Mandela's autobiography.

Between October and December Videovision sold its 9 percent stake in Kagiso Media for R110 million. After settling debt and other commitments, Videovision cleared just under R58 million from the sale. The debt was incurred when the shares were bought in 1996.

Singh said this week: "We have a lot of activities on the go and these need substantial funding. The Natal Command site, which will be developed into a film studio, will be several hundred million rands worth of activity. We are also planning to shoot [Nelson Mandela's autobiography] Long Walk to Freedom this year."

Singh remains a board member of Kagiso Media. Roger Jardine, Kagiso Media's chief executive, said: "Anant indicated a while ago that he wanted to monetise his investment as he has a lot of projects."

Kagiso's majority shareholder, Kagiso Trust Investments (KTI), bought 4.99 percent of Videovision's stake in Kagiso. KTI would have bought the remainder of the shares but the Securities Regulation Panel did not give it permission to do so, Jardine said.

A majority shareholder cannot increase its stake by more than 4.9 percent in a 12-month period unless it makes an offer to minorities. KTI now holds a 48.1 percent stake in Kagiso.

Singh expects construction on the film studio Durban Film City to begin in March. But this will depend on the resolution of outstanding legal issues. Karamchand Gayadin's Giant Concerts has opposed the sale of the site to Singh, saying the process was flawed.

Singh paid an initial R15 million for Natal Command on the Durban beachfront, which some people thought should have been sold for closer to R100 million. Depending on how the site is developed, the price could escalate to R71 million. Durban Film City, which will include film production facilities and live entertainment venues, will cost over R700 million. Singh said other investors would be taken on but he still has to take the project to the market.

"The legal issue will be resolved next month," Singh said. Videovision, in partnership with e.tv, is also planning a film studio in Cape Town to be called Dreamworld, which is planned to cost R400 million.

Long Walk to Freedom, which is an epic motion picture based on Nelson Mandela's autobiography, is expected to cost R200 million and will be released on the circuit in mid-2007. The film will star US actor Morgan Freeman.

Videovision has produced 64 feature films since its first movie, The Place of Weeping, which was made in 1984. Yesterday Kagiso shares gained 2.16 percent to R14.20. The media and entertainment sector firmed by 1.82 percent.

Source: Business Report, 19 January 2006

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