SOUTH AFRICA – The broad-based internet and media group, Naspers has announced that it has completed the unbundling of its shares in MultiChoice Group (MCG) to shareholders after successfully listing it on the Johannesburg Stock Exchange (JSE).
Naspers has distributed to its shareholders one MCG share for every one Naspers “N” ordinary share held, giving them a direct interest in the newly-listed MCG.
As part of the transaction, additional 5% stake in the issued share capital of MultiChoice South Africa Holdings Proprietary Limited (MCSA) has been allocated to Phuthuma Nathi (PN) shareholders for no consideration.
As a result, PN shareholders’ indirect interest in MCSA has increased from 20% to 25% which will increase by 25% their share of dividend flows.
MultiChoice is one of the leading entertainment companies in Africa, operating the DStv Satellite Television service, a major satellite TV service in Sub-Saharan Africa.
MultiChoice provides entertainment to around 14 million households across 50 countries in Africa and owns DStv Mobile, a service that delivers television transmission to mobile devices such as laptops, smart phones and notebooks.
It offers its customers with leading local and international entertainment and sports content across multiple platforms, including digital satellite, terrestrial television, and online streaming.
“The unbundling of MultiChoice Group marks a significant step for Naspers, completing our transformation to a global consumer internet company, with effectively 100% of our revenues and profits now coming from online,” said Bob van Dijk, Naspers Chief Executive Officer.
We are proud to have built MultiChoice Group into the major success it is today and to be able to unlock the value created in that business to our shareholders, while also creating additional value for Phuthuma Nathi shareholders in South Africa.
Since its founding more than 30 years ago, MultiChoice Group has been a pioneer in pay-TV and video entertainment in Africa and has now started a new chapter as an independently listed business with attractive long-term growth opportunities.”
Naspers said it remains committed to South Africa and will continue to operate and invest in local ecommerce and internet companies across classifieds, etail, payments, and online food delivery, as well as Media24.
Naspers which operates in internet communication, entertainment, gaming and e-commerce said it has invested US$479.77 million (R6.9 billion) over the last three years in developing its existing South African businesses and through M&A activity.
The company has further committed to invest US$319.91 million (R4.6 billion) in new and existing technology companies in South Africa in three years.
It also unveiled Naspers Foundry, a US$96 million (R1.4 billion) fund which it said will be launched in in the first half of 2019 to back up technology start-ups in South Africa.