Naspers’ video entertainment business, MultiChoice Group, will reportedly get listed on the Johannesburg Stock Exchange (JSE) next month on February 27, if all goes according to plan. The listing comes as part of the South Africa-based tech giant’s business plans announced last year.
Naspers had announced its intention to unbundle MultiChoice back in September 2018. The company believes that the unbundling will create a leading entertainment business listed on the JSE that is profitable and higher cash generative. It will have limited leverage and will be able to pursue growth opportunities in African media entertainment.
The MultiChoice group will include subsidiaries such as MultiChoice South Africa, MultiChoice Africa, Showmax and Irdeto, and their subsidiaries and affiliates, among others.
In a pre-listing statement, MultiChoice said its shares will list on the broadcasting and entertainment sector of the stock exchange. It has reportedly set aside R2.5bn for paying dividends to shareholders for the year to March 2020.
“The board intends to declare an inaugural dividend of R2.5 billion for our financial year 2020,” MultiChoice chief financial officer Tim Jacobs said on Monday, reported Reuters.
Naspers shareholders as of 26 February would get shares in MultiChoice through a pro rata distribution basis. MultiChoice’s shares will be unbundled to current Naspers shareholders, with its “N” class of shareholders receiving one Multichoice share for every Naspers share and its “A” shareholders getting five MultiChoice shares for each in Naspers.
Notably, Naspers’ video entertainment business is one of the fastest growing pay-TV operators globally and its multi-platform business entertains 13.5 million households across Africa and earned a trading profit of R6.1 billion in their previous financial year. Naspers would hand its stake in the DStv operator to its shareholders with effect from March 4.