Watch the news & stories in motion: Subscribe to WeeTracker on YouTube
MultiChoice Group (MCG) shares has risen significantly after it was listed on the Johannesburg Stock Exchange’s Main Board.
The Naspers-backed company that debuted on JSE on Wednesday opened with shares at USD 6.79. at around 9:00. The company set the stock market on fire soaring 16 percent in the debut trading valuing the company at USD 3.5 Bn .The shares later dipped to USD 7.16 per share at 1:32 pm SA time.
MultiChoice Group includes MultiChoice South Africa, MultiChoice Africa, Showmax Africa, and Irdeto. The company provides local and international content to 14 Mn households in Africa. The South African company operates the DStv Satellite Television service, a major satellite TV service in Sub-Saharan Africa. MultiChoice is DStv Mobile, a service that delivers television transmission to mobile devices such as laptops, smart phones and notebooks. Media and technology giant Naspers is the parent company of MultiChoice.
MultiChoice Group CEO Calvo Mawela acknowledged that the listing is a milestone in their journey adding, “As one of the fastest-growing pay-TV broadcast providers globally, our strong financial position at listing is backed by attractive long-term growth opportunities in both subscriber numbers and revenue. MCG has a highly cash generative core with no financial debt, and we are poised to deliver value to our shareholders over time.”
The Director, Capital Markets and Group Strategy at the JSE, Donna Nemer expressed excitement as they welcomed the MultiChoice Group listing noting that it is a celebration. She added that “it is an opportunity for MultiChoice to unlock a wealth of potential and capital for its investors.”
The listing and impending unbundling of MCG by Naspers buttresses the commitment of both MCG and Naspers to broad, socio-economic transformation in South Africa.
Following the JSE listing, Phuthuma Nathi (PN) shareholders will be allocated an additional percent stake in MultiChoice South Africa (MCSA) for no consideration, thereby increasing their indirect interest in MCSA from percent to 25 percent, and resulting in a 25 percent increase in PN’s share of MCSA dividend flows. Through PN, MCSA has provided long-term, far-reaching benefits to more than 90K individual and institutional B-BBEE shareholders.
Naspers CEO Bob van Dijk said, “Today is a proud day for Naspers. Listing MultiChoice Group through an unbundling unlocks value for Naspers shareholders by creating the opportunity for them to own a direct stake in MultiChoice Group, a top-40 JSE-listed African entertainment group.”
He further acknowledged that they are pleased to be able to create further value for Phuthuma Nathi shareholders.
MultiChoice which has been known to be the cash cow for Naspers, will now operate independently after the spin-off. MCG joins Naspers Limited, African Media Entertainment Limited and three other media companies that have been listed on the JSE.
Featured Image Courtesy: DSTV
Found the article interesting ? Follow us on Twitter to see what others are saying about it.
9500+ subscribers are getting our free newsletter on African technology, startups and innovators bi-weekly.
Made with ❤ in Africa