MultiChoice declares R1.5bn dividend for Phuthuma Nathi shareholders
The declared amount represents an increase of 13.6% on 2018's dividend
Shareholders in one of the country's largest empowerment schemes will soon be smiling all the way to the bank, as pay TV operator MultiChoice declared a R1.5bn dividend on Wednesday.
MultiChoice CEO Calvo Mawela said the group was "pleased to announce an increased dividend to our Phuthuma Nathi shareholders, despite tough economic conditions”.
The latest dividend represents an increase of 13.6% from 2018. The company said the additional 5% share allocation given to the scheme, as part of MultiChoice's listing in February, contributed to the increase in dividend declared.
Earlier in 2019, African's largest pay TV business listed on the JSE, putting an end to its time as part of the Naspers fold from which it was founded two decades ago.
As part of the transaction, Phuthuma Nathi companies were given an additional 5% share allocation in MultiChoice, which increased the scheme’s shareholding from 20% to 25%.
“This additional 5% allocation is a substantial contribution by the MCG (MultiChoice Group) to PN (Phuthuma Nathi) and reinforces the MCG’s commitment to broad, socioeconomic transformation in SA,” the company said.
Owning a 25% stake in the DStv operator's SA operations, Phuthuma Nathi says it is one of the most successful broad-based black economic empowerment (B-BBEE) schemes in SA.
“The Phuthuma Nathi schemes have now been running for about 13 years and we’re proud that we are able to share our success with thousands of black South Africans. The dividends are a way we can demonstrate our thanks to our shareholders for the role they have played in transforming MultiChoice SA,” Mawela said.
The company, which has a subscriber base of more than 15-million on the continent, said that by September, approximately R11.9bn will have been paid in dividends to Phuthuma Nathi companies since the scheme's inception.