Independent Newspapers Holdings, the South African newspaper company, 60 per cent owned by Independent Newspapers, has agreed to sell its 42.5 per cent of the Sowetan to New Africa Investments for around £9.5 million. The Sowetan is an English language tabloid daily newspaper with most of its circulation around the Johannesburg area of South Africa. The sale values the newspaper at R150 million (£22.5 million). New African Investments already owns a 52.5 per cent interest in the Sowetan which it acquired when the newspaper was sold-off by Argus Newspapers in early 1994. This was prior to Independent Newspapers' investment in Argus, since renamed Independent Newspapers Holdings.

Independent Newspapers Holdings now has eleven of the fifteen major four colour presses in South Africa, said Mr Liam Healy, chief executive of Independent Newspapers. It is now "seriously looking at the possibility of launching its own English language tabloid to circulate in main cities and townships", he added.

He noted that the group's initial investment in South Africa, including the stake in the Sowetan, was around £53 million. Since then the investment has "grown substantially with Independent Newspapers Holdings now capitalised on the South African stock Exchange at almost £200 million".