The Publisher of National Mirror and Daily Newswatch newspapers, Barrister Jimoh Ibrahim, has made an offer of N700 million for the purchase of Compass newspaper, The Eagle Online can authoritatively report.
Inside sources privy to the deal, which was first exclusively reported by The Eagle Online, said Ibrahim made the offer on Wednesday for the company, which value was last put at N2.6 billion.
It was learnt that Ibrahim pegged the offer at N700 million because of the huge debt overhang of Compass, which is owing staff over two years salary, allowances, unremitted but deducted pension fund, PAY As You Earn and severance packages.
The company is also hugely indebted in tax to government.
Sources however said that while the Managing Director/Editor-in-Chief, Sina Kawonise, has acceded to the deal, the owner and former Governor of Ogun State, Otunba Gbenga Daniel, wants the offer to be reviewed upwards.
Daniel is reported to have said he would be more comfortable with N1 billion.
Daniel was not in the country when the deal was sealed on Wednesday.
Ibrahim had on Tuesday visited the premises of the company.
He was conducted round the premises of the ailing company by Kawonise and some of his lieutenants, including the Daily Editor, Yinka Olujimi.
Kawonise in a statement on Thursday however denied the company was up for sale.
Kawonise, who is angling to become the next governor of Ogun State, in a statement by his campaign organisation, said that Ibrahim’s visit was only a courtesy call.
He said that Ibrahim has been his friend for a long time and only came calling.
The statement was signed by Kayode Ajala.
Meanwhile, it has also been learnt that the newspaper, which has been operating in fits and start, has concluded plans to shut down its weekend editions.
The newspaper is now to be on the newsstand from Monday to Friday, with the Saturday and Sunday editions suspended.
The Weekend Editor, Chuka Nnabuife, is now to edit the Friday edition while Olujimi will be in charge of the Monday to Thursday editions.
the statement by Ajala is reproduced below unedited:
COMPASS NEWSPAPER IS NOT UP FOR SALE
Our attention has been drawn to a report published by an on-line news portal claiming that the Compass Newspaper has been acquired by billionaire businessman, Mr Jimoh Ibrahim. The said report, which is obviously the handiwork of mischief makers, stems from Mr Jimoh Ibrahim’s visit to the premises of Compass newspaper on Tuesday, 21st October, 2013.
Mr Jimoh Ibrahim had visited the premises of Compass newspapers on Tuesday on a courtesy visit to the Managing Director of Compass, Mr Sina Kawonise. It should be noted that Mr Kawonise is a long standing friend of Mr Jimoh Ibrahim and Ibrahim’s visit to the offices of Compass was actually to reciprocate an earlier visit to the Igbotako country home of the billionare businessman by Mr Sina Kawonise.
While it is a normal practice for businesses to go into mergers and acquisitions, we must categorically state that the Compass newspaper is not up for sale and has not been bought by Mr Jimoh Ibrahim or any other individual or organisation for that matter.
Signed
Kayode AJALA, Director, Media & Publicity, Sina Kawonise (SK) Campaign Organisation.
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