South Africa’s Naspers Limited has finally cut-off Multichoice from its business with the listing of the payTV company on the Johannesburg Stock Exchange, JSE.
Multichoice is the largest payTV company in Africa with major brands such as DSTV, GoTV, SuperSport, MNeT, Africa Magic and ShowMax, its online streaming business.
Listed as MCG include, the business includes MultiChoice South Africa (MCSA), MultiChoice Africa Holdings (MAH), Showmax, as well as the global digital platform security provider Irdeto, and all their subsidiaries and affiliates (MultiChoice Group).
Calvo Mawela, Group CEO, commented: “Today’s listing is an important milestone in our exciting journey of growth. 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.”
Bob van Dijk, Naspers Chief Executive Officer, commented: “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. We are also very pleased to be able to create further value for Phuthuma Nathi shareholders, who, through MultiChoice South Africa, have already participated in one of South Africa’s most successful empowerment schemes. As MultiChoice Group embarks on its next exciting chapter I look forward to seeing the team build further on their impressive success story.”
Mawela concluded: “We are overwhelmingly positive about MultiChoice Group’s future. With the largest pay-TV footprint across Africa, we understand our customers and tailor our offering and services to suit market-specific video entertainment needs. This, coupled with a leading content offering, world-class technology and infrastructure, pan-African scale and strong in-country capabilities, positions us well to generate shareholder returns and future growth.”
This listing has been in the works for more than a year as Naspers looks to focus on its Internet businesses. Naspers is a majority owner of China’s Tencent, an equity holding that is worth more than $300 billion.