Buy gives Trevor Ncube a foothold in advertising
July 14, 2004
By Thabiso Mochiko
Johannesburg - A consortium led by Mail & Guardian (M&G) chief executive Trevor Ncube has bought a 26 percent stake in unlisted advertising and marketing company Open Communication.
Ncube, who heads the Dream Works Consortium, would not disclose the value of the deal.
But Open Communication, which has 19 employees, has been valued at R12.1 million by Brian Rogers, one of its directors.
M&G is one of Open Communication's clients, but Ncube said there would not be a conflict of interest as the M&G board had given him approval.
Ncube will become Open Communication's non-executive chairman.
He said that although he did not have advertising background he would "bring passion and determination ... [and] lots of contacts and understanding of the South African and Zimbabwean market" to the company.
"I have declared it to the board and was given the go-ahead. I am doing this in my personal capacity," he said, adding that M&G was not involved in the deal.
Rogers said: "The consortium has connections in the media industry and hopes that it will bring new business projects."
Open Communication was established three years ago by Rogers, who holds 25 percent, and Corrin Magowan and his brother Dermot, who together hold 49 percent.
The company was voted Newcomer of the Year in the 2004 Finance Week Ad Review Awards and was ranked number 21 on Ad Review's table of the top 30 marketing communications groups in South Africa.
"We are hoping to continue to grow and we will hire more people," Rogers said.
Its clients include the City of Johannesburg, SA Eagle, Alcatel Cellular, Barloworld Entertainment, M&G, De Beers Operations and Exploration, and FNB Corporate.
Ncube decided to buy a stake in Open Communication because "they are a young team, full of passion and great promise. Advertising is a creative industry and I believe that I have something to contribute. I've been sniffing around for an opportunity in the advertising industry."
Ncube said Dream Works was a special purpose vehicle established for this acquisition.
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