Naspers says legal action not being taken against its MultiChoice subsidiary
Global law firm Pomerantz says it is initiating an investigation, but Naspers says such procedures are ‘not uncommon’ and doesn’t mean legal proceedings are under way
Naspers has not been informed of any legal action by any of its investors but the company has reiterated that it is taking allegations of wrongdoing seriously‚ a spokesperson said. On Monday, leading global law firm Pomerantz announced it had initiated an investigation to determine if Naspers subsidiary MultiChoice was involved in any securities fraud or unlawful business practices relating to payments to Gupta-owned news channel ANN7. According to reports stemming from leaked Gupta e-mails‚ MultiChoice substantially increased its annual payment to ANN7 from R50m to R141m over the past two years. The Pomerantz statement added that on the back of this news‚ "Naspers’s American Depositary Receipt price fell $3.05‚ or 5.58%‚ to close at $51.60 on December 1‚ 2017".
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