MultiChoice offers Phuthuma Nathi shareholders exposure to its group assets
The deal will give empowerment scheme shareholders the opportunity to gain exposure to all of the DStv operator’s assets, not only those held by MultiChoice SA
Pay-TV operator MultiChoice said on Monday it intends to offer its black investors in Phuthuma Nathi empowerment scheme shares in the listed company.
As part of its broad-based black economic empowerment (B-B-BEE) transaction, MultiChoice sold shares in its SA operations to black investors through Phuthuma Nathi schemes.
The DStv operator wants Phuthuma Nathi shareholders to exchange up to 20% of their stock in the scheme for shares in the listed MultiChoice Group. The deal will give Phuthuma Nathi shareholders the opportunity to gain exposure to all of MultiChoice's assets, not only those held by MultiChoice SA. The move will also provide additional liquidity through the listed MultiChoice shares, it said.
MultiChoice said it will apply an exchange ratio of 0.97 MultiChoice shares for every 1 Phuthuma Nathi share. That means, someone with 100 shares in Phuthuma Nathi could exchange for up to 97 shares in the pay-TV company.
In August MultiChoice declared a R1.5bn dividend for Phuthuma Nathi shareholders.
The 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 dividends declared.