Naspers has announced its plans to list its video entertainment business separately on the Johannesburg Stock Exchange (JSE) and simultaneously unbundle the shares in this business to its shareholders.
In a shareholder announcement on today, Naspers said that the new company will be named MultiChoice Group Ltd and will include:
- MultiChoice South Africa Holdings (Pty) Ltd
- MultiChoice Africa Holdings B.V
- MultiChoice Botswana (Pty) Ltd
- MultiChoice Namibia (Pty) Ltd
- NMS Insurance Services SA Ltd
- The African division of Showmax
- Irdeto Holdings B.V.
- Irdeto South Africa (Pty) Ltd
“This marks a significant step for the Naspers Group as it continues its evolution into a global consumer internet company,” it said.
“Listing MultiChoice Group via an unbundling is expected to unlock value for Naspers shareholders and at the same time create an empowered, top 40 JSE-listed African entertainment company.”
The MultiChoice Group said that it will remain committed to broad, socio-economic transformation in South Africa – most notably through its Phuthuma Nathi Investments.
The Phuthuma Nathi schemes are among the most successful broad-based black economic empowerment (BBBEE) schemes in South Africa and have already created around R12 billion in value for BBBEE shareholders.
“The listing and unbundling are intended to create a leading entertainment business listed on the JSE that is profitable and highly cash generative – today, it is one of the fastest growing pay-TV operators globally and its multi-platform business entertains 13.5 million households across Africa,” it said.
“In the last financial year, the business added 1.5 million subscribers, and generated revenue of R47.1 billion and trading profit of R6.1 billion. It employs more than 9,000 people in Africa and indirectly creates economic prosperity for over 20,000 more who are employed by its various partners and suppliers across the continent.”
Continued investment
The Naspers board said that it expects that the listing and unbundling will deliver value to the South African economy.
“Naspers will continue to invest in South Africa through its interests in e-commerce businesses such as Takealot, Mr D Food, PayU, OLX, Property24, and AutoTrader SA, among others,” it said.
“In South Africa, over the past three years, Naspers has invested a total of R6.9 billion in M&A activity and in developing its existing businesses. In the past financial year alone, ZAR3.3 billion was allocated to its internet businesses. Naspers will also retain its primary listing on the JSE as well as its interests in Media24.”
It added that the MultiChoice Group is anticipated to list on the JSE in the first half of 2019, subject to the approval of the requisite regulatory authorities.
