JSE approves listing for MultiChoice Group Limited (MCG), Africa’s leading video entertainment platform reaching around 14-million households across multiple distribution platforms in 50 countries.
MCG today released its pre-listing statement in compliance with the JSE Listings Requirements.
Shares of MCG will commence trading on the JSE on Wednesday, 27 February 2019.
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.
Africa’s largest internet and media firm Naspers to unbundle MCG.
“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,” Calvo Mawela, Group CEO of MCG said.
“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 said it intends to pursue both these avenues of growth.
MCG 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.
It also 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.
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.
Further, post-listing and subject to obtaining the necessary PN board and shareholder approvals, it is the ambition of MCG to enable 25% of the PN shareholders’ original shareholding (i.e. before the allocation of the additional 5%) to be exchanged for MCG shares that will be freely tradeable, thereby unlocking incremental value for PN shareholders.
The exchange of MCSA shares for MCG Shares is expected to unlock incremental value for the PN shareholders.