Naspers Limited (JSE: NPN; LSE: NPSN): MultiChoice Group
Limited (MCG) today released its pre-listing statement in
compliance with the JSE Listings Requirements (www.multichoice.com)
providing further details about its listing on the Johannesburg
Stock Exchange (JSE). Trading in MCG shares is expected to commence
on the JSE on Wednesday, 27 February 2019. As announced on 17
September 2018, 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 (“the Group”).
Calvo Mawela, Group Chief Executive Officer of MCG said: “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. 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
intends to pursue both these avenues of growth.
Bob van Dijk, Naspers CEO, said:
“MultiChoice Group is a pioneer in video entertainment across
Africa and we are extremely proud to have built this company into a
major success from the time when it was founded over 30 years ago.
The strength of the company’s leadership team, alongside its
compelling content, world-class technological capabilities and
attractive financial profile means that it is very well positioned
for future growth in an evolving sector on the African
continent.”
Content as a key driver of growth
MCG plays an important role in making information and
entertainment content easily accessible to its customers in Africa.
In countries where celebrating culture is an important driver of
consumption, MCG creates and showcases unparalleled local content.
Access to international content from eight of the top ten US
studios, including movie and children’s content, is another key
pillar in the Group’s offering and growth plan.
The Group 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.
World-class technology and infrastructure
MCG 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.
Committed to empowerment
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 through the allocation of an
additional 5% stake in MCSA to PN for no consideration. This
empowerment transaction will be implemented on the Unbundling
Operative Date, and will increase the PN shareholders’ indirect
interest in MCSA to 25%, resulting in a 25% increase in PN’s
dividend inflows.
After the Admission, and subject to obtaining PN board and
shareholder approvals, it is MultiChoice Group's intention to
enable an exchange of 25% of PN's original shareholding (before the
allocation of the additional 5% discussed above) in MCSA for Shares
in MultiChoice Group, which Shares will be freely tradeable on the
JSE. The exchange of MCSA shares for MultiChoice Group Shares is
expected to unlock incremental value for the PN shareholders.
The Group’s development agenda and investments have brought
social and economic benefits to the communities across the
continent. MCG employs more than 11 000 people across Africa and
indirectly creates economic prosperity for more than 20 000 people
who are employed by partners and suppliers.
About MultiChoice Group
MultiChoice Group is Africa's leading multi-channel digital
satellite and pay-television destination, offering its 14 million
customers access to a world of entertainment, anywhere, anytime.
MultiChoice has been in operation for the past 20 years and through
its flagship product brand, DStv, the company delivers the latest
and most compelling local and international content to millions of
households across Africa. The company’s ongoing commitment to
innovation and technology advancement resulted in the creation of
its iconic high definition PVR decoder, the DStv Explora –
which won the Product of the Year for 2015.
Through its corporate social
investment, MultiChoice actively participates in social
transformation, ongoing investment in local content, job
creation and skills development - which in turn
strengthens the television and broadcasting industry and
contributes to the South African economy.
About MultiChoice Africa
MultiChoice Africa is a video entertainment provider, and our
role is to enrich lives. Our mission is to deliver value to
our customers by making great entertainment more accessible to
millions of people across Africa – anytime, anywhere via multiple
platforms including Direct-To-Home satellite (DTH) platform - DStv
(www.dstv.com), a Digital Terrestrial Television (DTT) platform -
GOtv (www.gotvafrica.com) as well as Video-On-Demand and OTT
platforms Showmax and DStv Now. Whether it’s local telenovelas, the
excitement of world-class sport or the latest global blockbusters,
our investment in leading-edge content and technology systems
deliver the shows that people love into their hands and homes. Born
and bred in Africa, MultiChoice Africa is managed and run by local
people with a team of more than 2750 full-time and over 14 000
contractors and independent agencies and accredited installers who
collectively deliver the greatest entertainment in the world to
more than 49 countries across Sub-Saharan Africa. Our business has
grown hand-in-hand with local economies by forging long-term
partnerships with governments, national broadcasters and
entrepreneurs and as the continent’s leading funder of sport and
local productions, we’ve built skills and capacity to improve the
quality of content we offer through our flagship corporate shared
value initiative, MultiChoice Talent Factory (MTF)
(www.multichoicetalentfactory.com). It’s by creating value for our
customers, our employees and society that we will continue to build
a successful business for the future. Visit
www.multichoiceafrica.com for more information.
About Irdeto
Irdeto is the world leader in digital platform security,
protecting platforms and applications for video entertainment,
video games, connected transport and IoT connected industries.
Irdeto’s solutions and services enable customers to protect their
revenue, create new offerings and fight cybercrime. With 50 years
of expertise in security, Irdeto’s software security technology and
cyberservices protect over 5 billion devices and applications for
some of the world’s best-known brands. With a unique heritage in
security innovation, Irdeto is the well-established and reliable
partner to build a secure future where people can embrace
connectivity without fear. Please visit Irdeto at
www.irdeto.com.
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version on businesswire.com: https://www.businesswire.com/news/home/20190121005293/en/
Joe Heshu, Group Executive of Corporate AffairsTel: +27
11 289 3952Mobile: +27 60 973
6776Email: Jabavu.heshu@multichoice.co.zaorBenedict Maaga,
Senior Manager of Corporate CommunicationsTel: +27 11 289
3312Mobile: +27 79 501
1785Email: Benedict.maaga@multichoice.co.zawww.multichoice.com
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