After presiding over the most successful BEE transaction in SA’s history, MultiChoice Group has taken steps that will subtly reverse some of the gains of the black investors in the SA unit. In a scheme that must be taken up by October 28, MultiChoice is offering to exchange up to 20% of the shares in Phuthuma Nathi for stock in the listed entity.

In reality, investors who fall for this gimmick will be robbed of a far more valuable investment opportunity. This is expropriation by stealth. Phuthuma Nathi’s only asset is a 25% stake in MultiChoice SA, which accounts for about 80% of the group. MultiChoice owns the rest of the shares. If MultiChoice has its way, it will exchange each Phuthuma Nathi share for a 0.97 share in MultiChoice Group...

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