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Perskor, TML and Caxton/CTP

Overview

This profile considers Johnnic Publishing, South African Associated Newspapers, Perskor, Omni Media and Caxton

Introduction

The history of South African Associated Newspapers (SAAN), Perskor, Caxton, Omni Media and Johnnic Publishing illustrates the vicissitudes of newspaper and magazine publishing in South Africa under the British Empire, Apartheid regime and contemporary government.

As with Australia, a small population saw the emergence of a handful of newspaper chains. In contrast to Australia restrictions on offshore investment during much of last century, along with competition from what are now the INM and Nasper groups resulted in increased concentration (often under the auspices of dominant industrial and financial conglomerates such as Anglo American) and the demise of publishers rather than expansion overseas. The end of Apartheid saw increased scope for investment from overseas, coupled with disinvestment by groups such as Anglo that were now freer to move their resources to the northern hemisphere.

Johnnic, SAAN and TML

Johnnic Publishing - an arm of Johannesburg Investments (owned by the National Empowerment Consortium (NEC)), a coalition of black business groups and trade unions) - embodies Times Media Limited (TML)

The consortium acquired TML from Omni Media Corporation, controlled by the Anglo American conglomerate, in 1996. NEC's takeover of Johnnic coincided with establishment of a joint venture between TML and UK group Pearson, with the latter acquiring of TML's Business Day and Financial Mail.

Johnnic publishes the Sunday Times, South Africa's largest Sunday newspaper. It has interests in magazines and entertainment, along with a 50% stake in Sowetan Sunday World, a tabloid established in 1999. (The other 50% is held by New Africa Publications, publisher of the daily Sowetan).

Johannesburg Consolidated Investment Company (JCI) was established in 1889 during the gold rush of that era. Anglo American Corporation, founded by Sir Ernest Oppenheimer in 1917, became the largest single shareholder in De Beers in 1926. It bought a stake in Hudson Bay Mining & Smelting Company in 1961 and established the timber and paper group Mondi in 1967. It had meanwhile expanded into insurance, property development, metal processing and media.

During 1935 I. W. Schlesinger acquired the Johannesburg Sunday Express (founded by Arthur Barlow in 1934), going on to launch the Sunday Tribune in Durban in 1935, followed by the daily Johannesburg Express and Durban Tribune in 1937. 1939 saw the Argus, Rand Daily Mail and Sunday Times buy Schlesinger's operations, with the Sunday Times gaining Sunday Express and Argus buying the Sunday Tribune and Daily Express.

In 1959 the Financial Mail was launched in partnership with UK Financial Times (50%); the FT stake was sold for R180,000 in 1974. During 1964 Sunday Express Ltd and Argus formed a joint venture to publish a new Sunday Chronicle. Links between the publishers were reflected in establishment during 1965 of South African Associated Newspapers (SAAN), which included the Rand Daily Mail and Sunday Express. In 1985 SAAN closed the Rand Daily Mail and Sunday Express. Two years later it formally became Times Media Ltd (TML).

JCI became Johnnies Industrial Corporation Limited when Anglo American Corporation split its JCI interests into JCI (gold), Amplats (platinum) and Johnnic (industrial and media) in 1995. In the following year NEC acquired 35% of Johnnic, which in turn owned 43% of Omni Media Corporation (which held 92% of TML). TML then sold 50% of BDFM (Business Day, Financial Mail and African Business Channel) to Pearson. TML and New Africa Publications launched the Sunday World in 1998. TML then launched and abandoned Sportsday, selling 30% of the Daily Dispatch to black empowerment consortium Isivuno for R15 million. In 2001 it became Johnnic Publishing.

Caxton and Perskor

Caxton traces its origins to 1902, when William Gindra and Edward Green established the Caxton printery in Pretoria. Caxton went public in 1947 but did not acquire its first newspaper (The South African Jewish Times) until 1961. In 1968 Caxton was acquired by Felstar Publications and launched The Germiston Eagle as the prototype of what became a chain of community newspapers. In 1979 it made an alliance with newspaper publisher Argus Group, dated from establishment in 1857 of The Cape Argus and of The Argus Printing & Publishing Company in 1866. Argus titles included the Post Transvaal, Sunday Star

1985 saw a reverse take-over of CTP (Cape & Transvaal Printers). In 1987 Caxton acquired KNL Web Printers in Isando from Nasionale Pers and Barlows, and formed joint venture - Newspaper Marketing Bureau (NMB) - with Argus to market print media to national advertisers. During the following year it bought the Horters printing and packaging group.

During 1995 Caxton unwound its links with Argus Group, now Independent Newspapers Holdings Ltd (INHL) under the control of Tony O'Reilly's INM. O'Reilly had acquired 31% of Argus Group from Anglo American and bought out the remaining shareholders in 1999. INHL sold its 42.5% stake in The Sowetan for R62m in 1997.

Caxton/CTP was restructured under the CTP banner and formed a partnership with NEC. Three years later it merged with Perskor and in 1999 sold the group's City Press and Rapport stake to Naspers.

CTP/Caxton Holdings' major shareholder is Omni Media, with a 43% stake as of 2001. The group publishes 15 magazines, accounting for 11.8% of the magazine market in 2000, and some 30 regional and community newspapers. It also publishes the daily paper The Citizen (circulation of around 130,000 in 2001).

Perskor was formed in 1971 through a merger between Afrikaans-owned publishing groups Voortrekkerpers and Afrikaanse Pers, competitors of what is now Naspers. In that year the Afrikaans Sundays Die Beeld (Nasionale Pers) and Dagbreek (Perskor) were amalgamated as the jointly-owned Rapport. Its stable included Imvo Zabantsundu (established in 1884 and acquired by Perskor in 1960) and English language daily tabloid daily The Citizen (launched with a government slush fund in 1976 and subsequently sold to Perskor)

Competition in a stagnant market saw Perskor lose significance as a newspaper and book publisher. Its three city newspapers were closed in the 1990s, amid increased competition from Naspers, and problems in its stationery and textbook operations resulted in a 1996 merger with Kagiso Publishers. Two years later it transferred control of its regional newspapers to Caxton.

As of 2002 CTP encompassed commercial print, book printing, stationery, packaging and labels, ink manufacturing, 88 free and sold Caxton newspapers (some jointly-owned) and 15 magazines.

Studies

For an introduction see Johan Muller's 'Press Houses at War: A Brief History of Nasionale Pers and Perskor' in The Press in South Africa (London: John Currey 1987) edited by Keyan Tomaselli, Ruth Tomaselli & Johan Muller.