Black investors in Phuthuma Nathi, the broad-based black economic empowerment arm of pay-TV operator MultiChoice, will share more than R1.5 billion in dividends.
MultiChoice South Africa (MCSA) today declared a dividend to Phuthuma Nathi (PN) shareholders of R1.5 billion, an increase of 13.6% from 2018.
The company said the additional 5% share allocation given to PN, as part of MultiChoice Group’s (MCG) listing on the JSE, contributed to the increase in dividend declared to PN shareholders.
PN is one of the most successful Broad-Based Black Economic Empowerment (B-BBEE) schemes in South Africa.
PN owns a 25% stake in MCSA, the South African operations of MCG, being MCSA.
“We are pleased to announce an increased dividend to our Phuthuma Nathi shareholders despite tough economic conditions,” says MCG CEO Calvo Mawela.
“The Phuthuma Nathi schemes have now been running for about 13 years and we’re proud that we are able to share our success with thousands of black South Africans. The dividends are a way we can demonstrate our thanks to our shareholders for the role they have played in transforming MultiChoice South Africa.”
In February 2019, MCG listed on the JSE and thereafter was unbundled from Naspers. As part of this transaction, the PN companies were allocated an additional 5% share allocation in MCSA, which increased PN’s shareholding from 20% to 25%. This additional 5% allocation is a substantial contribution by the MCG to PN and reinforces the MCG’s commitment to broad, socio-economic transformation in South Africa.
By September 2019, approximately R11.9 billion will have been paid in dividends to PN companies.