Independent Newspapers has offered over £47 million to buy out the minority shareholders in its South African subsidiary, Independent Newspaper Holdings. The minority shareholders own 24 per cent and the offer values Independent's operations in South Africa at 405 million rand (£195 million or €247.6 million).

The company is quoted on the Johannesburg Stock Exchange and Independent has offered the minority shareholders 26.5 rand per share, a 43 per cent premium on the 18.5 rand at which the shares had been trading before the offer.

Independent first took a stake in the Argus group, as it was then known, six years ago. It has progressively built its stake up to 76 per cent.

Independent chairman Dr Tony O'Reilly said that the buyout offer was in line with Independent's policy of owning 100 per cent of its businesses. Independent chief executive Mr Liam Healy said that the share is thinly traded and relatively illiquid. "This will enable us to move more swiftly in investing in opportunities in the country," he said.

Independent Newspaper Holdings is the biggest newspaper publisher in South Africa. Its newspapers account for 54-per cent of total readership, 60 per cent of English language readership and 64-per cent of metropolitan readership. The group's flagship title is The Star, based in Johannesburg.

But weakness in the South African economy and currency took a severe toll last year, with pre-tax profits falling from £25.2 million to £20.2 million.