MultiChoice Offers Empowerment-Scheme Shareholders Access To Its Group Assets
The Pay-TV operator MultiChoice revealed on Monday that it intends to offer its black investors in the Phuthuma Nathi empowerment scheme shares in the company.
As a significant part of its broad-based black economic empowerment (B-B-BEE) movement, MultiChoice sold shares in its South African operations to black investors through the Phuthuma Nathi schemes.
The DStv operator has given Phuthuma Nathi shareholders the option to exchange up to 20% of their stock in the scheme for shares in the MultiChoice Group. The deal would give Phuthuma Nathi shareholders the chance to gain exposure to all of MultiChoice’s assets, not limited to just those held by MultiChoice SA. The move will reportedly also provide more liquidity through the listed MultiChoice shares.
MultiChoice said it would apply an exchange ratio of 0.97 MultiChoice shares for each 1 Phuthuma Nathi share. That means someone who holds 100 shares in Phuthuma Nathi could exchange for up to 97 shares in the listed MultiChoice.
In August MultiChoice declared a multi-billion rand dividend for Phuthuma Nathi shareholders.
The dividend represents an increase of approximately 13.6% since 2018. The company said that the additional 5% share allocation that had been given to the scheme, as part of MultiChoice’s listing in February this year, contributed to the increase in the dividends declared.
Credit: This article originated from www.businesslive.co.za