As a result, PN shareholders’ indirect interest in MCSA has increased from 20% to 25% which will increase by 25% their share of dividend flows, Naspers said.A R1.4 billion fund has been set up for a new initiative called Naspers Foundry – to be launched in the first half of 2019 – which will back technology start-ups in South Africa that seek to address major societal needs.The remaining R3.2 billion of the commitment is to be injected into Naspers’ existing businesses and this has already started, the group said.MCG provides entertainment to around 14 million households across 50 countries on the African continent.Naspers says it has completed the unbundling of its shares in MultiChoice Group (MCG) to Naspers shareholders following the listing of MCG on the Johannesburg Stock Exchange (JSE) on 27 February 2019.
“This marks a significant step for the Naspers Group as we continue our evolution into a global consumer Internet company,” commented Naspers CEO Bob van Dijk. Naspers will continue to invest in South Africa through our interests in ecommerce businesses such as Takealot, Mr D Food, PayU, OLX, Property24, and AutoTrader SA, among others.”Copyright Advanced Television Ltd © 2001–2020“There are significant growth opportunities for MultiChoice Group in Africa,” suggested Patel. We are proud to have built MultiChoice Group into the major success it is today and to be able to unlock the value created in that business to our shareholders, while also creating additional value for Phuthuma Nathi shareholders in South Africa,” said Naspers CEO Bob van Dijk.Naspers has distributed to its shareholders one MCG share for every one Naspers “N” ordinary share held, giving them a direct interest in the newly-listed MCG, rather than holding that interest through Naspers.“Since its founding more than 30 years ago, MultiChoice Group has been a pioneer in pay-TV and video entertainment in Africa and has now started a new chapter as an independently listed business with attractive long-term growth opportunities.”Looking ahead, Naspers said it will continue to invest in South Africa; at the South Africa Investment Conference held in October 2018 Naspers committed to invest a further R4.6 billion in new and existing technology companies in South Africa over the coming three years.An additional 5% stake in the issued share capital of MultiChoice South Africa Holdings Proprietary Limited (MCSA) has been allocated to Phuthuma Nathi (PN) shareholders for no consideration. In the last financial year, the business added 1.5 million subscribers, and generated revenue of ZAR47.1 billion and trading profit of ZAR6.1 billion. The new company will be named MultiChoice Group and will include MultiChoice South Africa, MultiChoice Africa, Showmax Africa, and Irdeto.“Listing and unbundling MultiChoice Group is intended to create a leading entertainment business listed on the JSE that is profitable and cash generative,” explained Video Entertainment CEO Imtiaz Patel. This means that the PN shareholders’ interest in MCSA and its dividend flows is expected to increase by 25 per cent.“The Video Entertainment business is an African success story,” declared van Dijk. “Listing MultiChoice Group via an unbundling aims to unlock value for Naspers shareholders and at the same time create an empowered, top 40 JSE-listed African entertainment company.”Further, post-listing and subject to obtaining the necessary PN board and shareholder approvals, it is the ambition of MultiChoice Group to enable 25 per cent of the PN shareholders’ original shareholding (i.e.
“This unbundling and listing is expected to deliver value to the South African economy as well as to Naspers and Phuthuma Nathi shareholders.