MultiChoice: A windfall with conditions
The major benefit will come from investors being able to reference the listed MultiChoice Group for a price
Even before last week’s MultiChoice announcement, the Phuthuma Nathi (PN) BEE scheme was considered one of the country’s most generous. The dramatic, but not unexpected, announcement that Naspers would distribute its MultiChoice holding to Naspers shareholders as soon as it has sorted out all the regulatory obligations, mentioned a figure of R12bn in value creation for PN shareholders. The potential benefits of the unbundling process will considerably enhance this generosity, and in the process make other BEE offerings, such as Vodacom’s YeboYethu, MTN’s Zakhele and Sasol’s Inzalo, look a little tight-fisted. Naspers spokesperson Meloy Horn says ordinary dividends paid to PN shareholders since inception amounted to R6.2bn and the capital gain to an additional R5.7bn. Naspers offered eligible black people an indirect interest of 15% in MultiChoice SA in September 2006. The offer, which was pitched at R10 a share, was three times oversubscribed. About 120,000 applicants received the 4...
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