BUSINESSTECH /27 FEBRUARY 2019 - 14.05 / STAFF REPORTER
MultiChoice Group Limited (MCG) on Wednesday (27 February), listed on the Johannesburg Stock Exchange (JSE).
The group is listed under symbol “MCG” and started trading at a price of R95.
The listed MCG includes MultiChoice South Africa (MCSA), MultiChoice Africa Holdings (MAH), Showmax, as well as the global digital platform security provider Irdeto, and all their subsidiaries and affiliates (MultiChoice Group).
MultiChoice delivers local and international entertainment and sport content to around 14-million households in 50 African markets. It also includes the production of over 4,500 hours of local content in 10 studios across Africa.
“Today’s listing is an important milestone in our exciting journey of growth. As one of the fastest growing pay-
TV broadcast providers globally, our strong financial position at listing is backed by attractive long-term growth opportunities in both subscriber numbers and revenue. MCG has a highly cash generative core with no financial debt, and we are poised to deliver value to our shareholders over time,” said group CEO, Calvo Mawela.
MultiChoice said that there is meaningful scope to drive up pay-TV penetration in the rest of Africa in the mid to mass market while connected video services represent a fast-growing, longer-term opportunity.
The listing and impending unbundling of MCG by Naspers Limited reinforces the commitment of both MCG and Naspers Limited to broad, socio-economic transformation in South Africa.
Phuthuma Nathi (PN) shareholders will be allocated an additional 5% stake in MultiChoice South Africa (MCSA) for no consideration, thereby increasing their indirect interest in MCSA from 20% to 25%, and result in a 25% increase in PN’s share of MultiChoice dividend flows.
Through PN, MCSA has provided long-term, far-reaching benefits to 90,000 individual and institutional B-BBEE shareholders, with a return on investment of approximately 17 times since inception.
“Today is a proud day for Naspers. Listing MultiChoice Group through an unbundling unlocks value for Naspers shareholders by creating the opportunity for them to own a direct stake in MultiChoice Group, a top-40 JSE-listed African entertainment group,” said Naspers CEO, Bob van Dijk.
“We are also very pleased to be able to create further value for Phuthuma Nathi shareholders, who, through MultiChoice South Africa, have already participated in one of South Africa’s most successful empowerment schemes. As MultiChoice Group embarks on its next exciting chapter I look forward to seeing the team build further on their impressive success story.”
LINK : https://businesstech.co.za/news/media/302042/multichoice-lists-on-the-jse/
Disclaimer - The views expressed here are not necessarily those of the BEE CHAMBER