The Refinery and Sasani deal sealed

The deal was funded by the IDC and Rand Merchant Bank.

For the last 18 months, primarily due to the strengthening of the rand, there has been a significant decrease in the amount of international commercial footage being post-produced in South Africa. This influenced Sasani Limited's decision to sell off some of their post-production assets, according to a statement.

Said James Whitehouse, Sasani Limited CEO, "By selling to our competitors (Refinery and Condor), we have given them the opportunity to rationalise the market and achieve more exciting and hopefully more sustainable returns. The improved returns should give these suppliers ample justification to spend the essential capex that is required to keep our facilities base in South Africa world competitive."

For The Video Lab Johannesburg, the sale will not impact on the day to day running of the business. Dave Keet will continue in his role as Managing Director, Tracey Williams remains House Next Door Facilities Manageress and the company will maintain its focus on commercial work.

The Refinery and The Video Lab will continue to compete on the same basis, so clients will still be able to shop around for the best deal in terms of pricing and will have the same choice as regards to operators, technology, service and facilities.

"I honestly believe that the sale should be seen in a positive light. The customer will receive better quality service and technologically it will be far more cost effective for both companies, as duplications will be avoided. There is strength in consolidation and we are very excited about the future of both the long and short form industries in South Africa. We are believers in this industry and we are committed to giving something back to it," concludes Donald Rogan, Managing Director of The Refinery.

For more information about The Refinery and The Video Lab Johannesburg see: www.therefinery.co.za and www.videolab.co.za.