Gallo looking to buy SAPA

Gallo Images is looking into possibly purchasing the SA Press Association (Sapa), the news agency's chairman said today.

"Gallo is doing a due diligence process, where they are looking at the model, the production issues, the IT requirements, and they are also looking how it could be possible for Sapa to become part of the Gallo group of companies," Tim du Plessis said.

This was not to say Gallo Images would take over Sapa.

"They are doing the due diligence and how the system works. On the basis of the due diligence process, they will make a final decision, and the ultimate decision will lie with the Sapa board."

The main concern for the board was that Sapa continued as a news agency.

"We are very keen for Sapa to continue as a news agency and operation, and we want proper regard to be taken to the current staff."

This followed the Tiso Blackstar Group withdrawing its membership of Sapa, with Caxton following suit in July.

"Independent Newspapers gave six months' notice period. They will withdraw their membership of Sapa and from November onwards, they will no longer be a member," Du Plessis said.

"That only leaves Media24."

This left the current operational model needing revision. The board then decided it needed to try find a new home for Sapa, with the board receiving enquiries from other organisations, with some of them being based overseas.

However, given Sapa's notable 75-year history and being the only independent news agency in Africa, the board thought Sapa must stay a South African enterprise.

"In the process of trying to find a new home for Sapa, Gallo Images emerged as a possibility and that is how they came to be involved," Du Plessis said.