Naspers acquires 30% in leading Brazilian media company
South Africa, 6th May 2006 - Naspers Limited (JSE: NPN, NASDAQ: NPSN), today announced that it
has acquired 30% of the leading Brazil media company Abril S.A. for a cash consideration of US$422
million. This transaction gives Naspers a stake in the growing Brazilian media market, through a leading
Abril is the largest magazine publisher in Brazil and one of the largest media companies in Latin America.
It has a 54% share of magazine circulation and 58% of magazine advertising revenues in Brazil.
Abril publishes five of the top ten magazine titles in Brazil. Its flagship newsweekly, Veja, is the fourth
highest selling weekly globally. It has a circulation of approximately 1,1 million and an average readership
of 8 million, the largest of any news magazine in the world not owned by a US-based group. In addition,
the company has Brazil’s leading educational book publisher and a pay television network.
The proceeds received by Abril from the transaction will be used to reduce debt and to fund expansion of
the business. After the transaction, the Civita family will hold 70% of Abril and Naspers 30%. Naspers will
fund the transaction from existing cash resources and will equity account its 30% interest. There are no
In the financial year ended 31 December 2005, Abril generated revenues of R$2,5 billion (R7,1 billion) and
Ebitda of R$468 million (R1,3 billion).
Koos Bekker, Naspers CEO, commented that, “We encountered Abril more than a decade ago for the first
time, and were immediately struck by the fact that it was a particularly well-run company with professional
“The acquisition is in line with our strategy to invest in the most promising of the developing economies.
Brazil is an attractive market, where strong economic growth is expected to drive domestic media
expansion. This acquisition give us the opportunity to apply our expertise in various media types in another
emerging market, to learn and to participate in growth”.
Hein Brand, CEO of Media24, said that, “To date, Naspers has had some success in establishing a
presence in 53 countries like China, Greece, Thailand and the rest of Africa. This transaction will create a
solid stake in Brazil. We look forward to working with Abril in sharing media expertise in pay TV, internet,
magazines and book publishing. I expect that we will learn as much as we contribute. We aim to make
this a beneficial partnership for both parties.”