[September 17, 2018] |
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Naspers to Separately List and Unbundle Its Video Entertainment Business as MultiChoice Group on the JSE
Naspers (News - Alert) Limited (JSE: NPN; LSE: NPSN) today announced its intention to
list its Video Entertainment business separately on the Johannesburg
Stock Exchange (JSE) and simultaneously to unbundle the shares in this
business to its shareholders. The new company will be named MultiChoice
Group and will include MultiChoice South Africa, MultiChoice Africa,
Showmax Africa, and Irdeto (News - Alert).
Commenting on the transaction, Naspers CEO Bob van Dijk said: "This
marks a significant step for the Naspers Group as we continue our
evolution into a global consumer internet company. Listing MultiChoice
Group via an unbundling aims to unlock value for Naspers shareholders
and at the same time create an empowered, top 40 JSE-listed African
entertainment company."
The transaction is expected to create further value for Phuthuma Nathi
(PN) broad-based black economic empowerment (BBBEE) shareholders who
have participated in one of the most successful BBBEE schemes in South
Africa, already creating around ZAR12 billion in value for BBBEE
shareholders. In recognition of PN's support over the years, and to
underline its commitment to transformation in South Africa, Naspers
intends to allocate - for no consideration - an additional 5% stake in
MultiChoice South Africa to PN shareholders, prior to the unbundling, to
increase MultiChoice Group's BBBEE shareholding. This means that the PN
shareholders' interest in MCSA and its dividend flows is expected to
increase by 25%.
The additional 5% stake in MultiChoice South Africa to PN shareholders
is designed to reinforce MultiChoice Group's commitment to broad-based
black economic empowerment, increase PN's upside in future value
creation, and ensure continued compliance with regulatory requirements
post unbundling.
Further, post-listing and subject to obtaining the necessary PN board
and shareholder approvals, it is the ambition of MultiChoice Group to
enable 25% of the PN shareholders' original shareholding (i.e. before
the allocation of the additional 5%) to be exchanged for MultiChoice
Group shares that will be freely tradeable, thereby unlocking
incremental value for PN shareholders.
Video Entertainment CEO Imtiaz Patel said: "Listing and unbundling
MultiChoice Group is intended to create a leading entertainment business
listed on the JSE that is profitable and cash generative. We offer an
unmatched selection of local and original content, as well as a
world-class sports offering. Our leadership team is diverse, experienced
and well-positioned to take the company forward. I am particularly
pleased that this transaction will further enhance the value for
Phuthuma Nathi shareholders."
Naspers' Video Entertainment business is one of the fastest growing
pay-TV oerators globally and its multi-platform business entertains
13.5 million households across Africa. In the last financial year, the
business added 1.5 million subscribers, and generated revenue of ZAR47.1
billion and trading profit of ZAR6.1 billion. It employs more than 9,000
people in Africa and indirectly creates economic prosperity for over
20,000 more who are employed by its various partners and suppliers
across the continent.
MultiChoice Group is expected to be unbundled with limited leverage,
providing it with the necessary financial flexibility to pursue growth
opportunities in African video entertainment. Africa is one of the
fastest-growing continents by both GDP and population, its middle-class
is rapidly expanding and the penetration of video entertainment is still
relatively low. The business is also positioning itself for the future
by offering online streaming services, including Showmax and DStv Now.
Looking ahead, Patel said: "There are significant growth
opportunities for MultiChoice Group in Africa. The combination of
MultiChoice's reach, Showmax and DStv Now's cutting-edge internet
television service, alongside Irdeto's 360 security suite will provide a
unique offering."
van Dijk concluded: "The Video Entertainment business is an African
success story. This unbundling and listing is expected to deliver value
to the South African economy as well as to Naspers and Phuthuma Nathi
shareholders. Naspers will continue to invest in South Africa through
our interests in ecommerce businesses such as Takealot, Mr D Food, PayU,
OLX, Property24, and AutoTrader SA, among others."
Naspers will retain its primary listing on the JSE as well as its
interests in Media24. MultiChoice Group is anticipated to list on the
JSE and simultaneously unbundle in the first half of 2019, subject to
the approval of the requisite regulatory authorities.
For more information, and to watch an interview with Naspers CEO Bob
van Dijk and Video Entertainment CEO Imtiaz Patel on today's
announcement please visit: http://enhancingaccess.com/
-- ENDS --
About Naspers
Founded in 1915, Naspers is a global internet and entertainment group
and one of the largest technology investors in the world. Operating in
more than 120 countries and markets with long-term growth potential,
Naspers builds leading companies that empower people and enrich
communities. It runs some of the world's leading platforms in internet,
video entertainment, and media.
Naspers companies connect people to each other and the wider world, help
people improve their daily lives, and entertain audiences with the best
of local and global content. Every day, millions of people use the
products and services of companies that Naspers has invested in,
acquired or built, including Avito, Brainly, Codecademy, eMAG, ibibo,
iFood, letgo, Media24, Movile, MultiChoice, OLX, PayU, Showmax,
SimilarWeb, Swiggy, Twiggle, and Udemy.
Similarly, hundreds of millions of people have made the platforms of its
associates a part of their daily lives: Tencent (www.tencent.com;
SEHK 00700), Mail.ru (www.corp.mail.ru;
LSE: MAIL), MakeMyTrip Limited (www.makemytrip.com;
NASDAQ:MMYT) and DeliveryHero (www.deliveryhero.com;
Xetra: DHER)
Naspers is listed on the Johannesburg Stock Exchange (NPN.SJ) and has an
ADR listing on the London Stock Exchange (LSE: NPSN).
For more information, please visit www.naspers.com.
View source version on businesswire.com: https://www.businesswire.com/news/home/20180917005352/en/
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