MultiChoice Group Listing Advances
Trading in MCG shares is expected to commence on the JSE on Wednesday, 27 February 2019. As announced on 17 September 2018, MCG will include, amongst others, MultiChoice South Africa (MCSA), MultiChoice Africa, Showmax, as well as the global digital platform security provider, Irdeto and all their subsidiaries and affiliates (“the Group”).
Calvo Mawela, Group Chief Executive Officer of MCG said: “We believe the listing of MultiChoice provides an excellent opportunity to invest in the leading provider of video entertainment on the African continent. MCG brings an incomparable local and international content offering to around 14-million households and is one of the fastest growing pay-TV broadcast providers globally. With strong financials, the flexibility of an ungeared balance sheet and deep local knowledge, we hope to deliver excellent returns to shareholders over time”.
The MCG management team is focused on the growth opportunity across Africa, a market of significant TV consumption by global standards. Pay-TV and Connected Video remain under-penetrated on the continent compared to many other markets in the world and MCG intends to pursue both these avenues of growth.
Bob van Dijk, Naspers CEO, said:
“MultiChoice Group is a pioneer in video entertainment across Africa and we are extremely proud to have built this company into a major success from the time when it was founded over 30 years ago. The strength of the company’s leadership team, alongside its compelling content, world-class technological capabilities and attractive financial profile means that it is very well positioned for future growth in an evolving sector on the African continent.”
Content as a key driver of growth
MCG plays an important role in making information and entertainment content easily accessible to its customers in Africa. In countries where celebrating culture is an important driver of consumption, MCG creates and showcases unparalleled local content. Access to international content from eight of the top ten US studios, including movie and children’s content, is another key pillar in the Group’s offering and growth plan.
The Group is also the continent’s largest funder of sport, providing leading sports offerings and holding major international as well as local sports rights. With extensive production capabilities for local sports events, the Group is an important partner for many sports federations thus making a major contribution to sports development.
World-class technology and infrastructure
MCG provides consumers with highly advanced, best-in-class technology. Irdeto, a digital platform security provider, is integral in providing cutting-edge security solutions, a key aspect of any pay-TV business. Irdeto also provides security and software services to numerous blue-chip clients globally and, as such, is also a standalone revenue and cash flow generator.
Committed to empowerment
In 2006 and 2007, Naspers undertook one of the largest Broad-Based Black Economic Empowerment (B-BBEE) transactions in South Africa by facilitating the acquisition of a stake in MCSA by black investors. Naspers arranged, structured and funded the sale of a 20% interest in MCSA to black investors through Phuthuma Nathi (PN). Today, PN comprises approximately 90,000 individual and institutional shareholders and its shares are listed on the Equity Express Securities Exchange.
The planned listing and unbundling of MCG reinforces the commitment of both MCG and Naspers to broad, socio-economic transformation in South Africa through the allocation of an additional 5% stake in MCSA to PN for no consideration. This empowerment transaction will be implemented on the Unbundling Operative Date, and will increase the PN shareholders’ indirect interest in MCSA to 25%, resulting in a 25% increase in PN’s dividend inflows.
After the Admission, and subject to obtaining PN board and shareholder approvals, it is MultiChoice Group's intention to enable an exchange of 25% of PN's original shareholding (before the allocation of the additional 5% discussed above) in MCSA for Shares in MultiChoice Group, which Shares will be freely tradeable on the JSE. The exchange of MCSA shares for MultiChoice Group Shares is expected to unlock incremental value for the PN shareholders.
The Group’s development agenda and investments have brought social and economic benefits to the communities across the continent. MCG employs more than 11 000 people across Africa and indirectly creates economic prosperity for more than 20 000 people who are employed by partners and suppliers.