04 Sep 2013

MultiChoice BBBEE Companies Receive R900m

MultiChoice today announced that its BBBEE companies, Phuthuma Nathi Investments and Phuthuma Nathi Investments 2, will receive ordinary and special dividends amounting to R900 million.

The Phuthuma Nathi companies will receive an ordinary dividend of R480 million, compared to R400 million paid last year, and a special dividend of R420 million. In turn, the Phuthuma Nathi companies will pay shareholders an ordinary dividend of 142.22 cents per ordinary share plus a special dividend of 124.44 cents per ordinary share. This means Phuthuma Nathi shareholders will receive dividends amounting to 266.66 cents per ordinary Phuthuma Nathi share, compared to 118.5 cents paid last year. This represents a significant increase of 125%.

“We are very proud that Phuthuma Nathi Investments have been paying dividends since inception. The ordinary dividends received by Phuthuma Nathi shareholders have more than tripled, growing from 43.3 cents per share in 2007 to 142.22 cents per share in 2013. With this year’s special dividend, Phuthuma Nathi shareholders have to date received R6.88 per share,” said Nolo Letele, Executive Chair of the MultiChoice South Africa Holdings group.

The special dividends have also been paid to reduce the original debt when the scheme launched in 2006. If MultiChoice continues to do well and is able to pay dividends, the preference share debt will be paid off in the coming years and the amount of dividends received by shareholders should increase even further over time.

Phuthuma Nathi shares started trading publicly on 8 December 2011. The trading platform for the Phuthuma Nathi companies hosted over 16000 deals to date, representing a volume of 10.9 million shares traded.

Mandla Langa, Chair of both Phuthuma Nathi companies said “Phuthuma Nathi has enabled ordinary black South Africans to invest in an innovative and cutting edge company. We are delighted that over 87% of our shareholders have held on to their shares since inception of the schemes. Shareholders who bought Phuthuma Nathi shares when the schemes launched in 2006 and 2007 at R10 per share, have seen a significant increase in the value of their investment. For example, the Phuthuma Nathi shares closed at R102.00 per share on 02 September 2013. This represents a capital growth of more than 900%”.

MultiChoice continues to play an important part in the community through every aspect of its business. SuperSport is the prime funder of sport across Africa, while M-Net produces a large component of its content locally, which is stimulating the local production industry and supporting the local economy. Some of the most popular local programmes include iNkaba, Isibaya, Zabalaza and Rockville.

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