INCECONNECT / 16 JANUARY 2019 - 17.05 / STAFF REPORTER
Naspers is unbundling its pay-TV business as it evolves into a global consumer internet company.
Naspers says Multichoice is making progress with its plans to list on the JSE. The unbundling and listing of the pay-TV and entertainment business is expected to take place in the first half of the year.
Naspers prepares for MultiChoice listing
The move comes as Naspers focuses on its online businesses, including food-delivery, classifieds and payments across the globe. It hopes that unbundling MultiChoice will unlock value for shareholders and narrow the discount it trades at relative to its 31.2% stake in Chinese messaging and gaming giant Tencent.
Naspers says the unbundling will create a leading entertainment business listed on the JSE that is profitable and highly cash generative. It says MultiChoice is one of the fastest-growing pay-TV operators globally, with its multi-platform business entertaining 13.5 million households across Africa. The unbundled group will include MultiChoice South Africa,
MultiChoice Africa, Botswana and Namibia, NMS Insurance Services, the African division of Showmax, and software security and media technology group Irdeto.
Apart from the shares that will be distributed to ordinary shareholders, Naspers plans to allocate an additional stake in Multichoice SA to empowerment shareholders Phuthuma Nathi, raising their stake to 25%. It will also swap a quarter of their original allocation for MultiChoice Group shares that will be freely tradable.
Naspers confirms that MultiChoice is finalising its pre-listing statement for purposes of submission to the JSE for formal approval, together with an application for approval of the listing of the MultiChoice shares on the JSE as a primary listing," the company said.
Its shares closed 2% higher at R3,042.14 yesterday. The announcement was made after the close of trade.
LINK : http://www.inceconnect.co.za/article/naspers-prepares-for-multichoice-listing?acid=oYJQqYd8EnkeZeuwhd4cWQ%3D%3D&adid=aZKrk8YgRSVThx%2FXV0VfAQ%3D%3D&date=2019-01-17
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