MultiChoice Group (MCG) listed on the JSE's Main Board. This is the first JSE listing in 2019. MultiChoice Group includes MultiChoice South Africa, MultiChoice Africa, Showmax Africa, and Irdeto.Calvo Mawela, MultiChoice 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."
MultiChoice Group brings leading local and international entertainment and sport content to around 14-million households in 50 African markets, providing viewers with access to content from 8 out of 10 major international studios. Importantly, MCG is differentiated by its production of over 4,500 hours of local content in 10 studios across Africa. Showmax alone has 17,500 hours of content with half being local content. Furthermore, MCG offers a world of champions with over 37 sports channels providing sports fans viewership of most iconic global sport events.
Donna Nemer, Director, Capital Markets and Group Strategy at the JSE, welcomed the MultiChoice Group listing, adding that: "This significant listing is a cause for celebration not only for the Company, but for the JSE as well. This is an opportunity for MultiChoice to unlock a wealth of potential and capital for its investors on one of the most trusted, stable and robust exchanges globally. We are delighted to be part of this journey and will continue to work hard to build better markets for the MultiChoice Group and its shareholders."
The listing and impending unbundling of MCG by Naspers reinforces the commitment of both MCG and Naspers to broad, socio-economic transformation in South Africa. Phuthuma Nathi (PN) shareholders will be allocated an additional 5% stake in MultiChoice South Africa (MCSA) for no consideration, thereby increasing their indirect interest in MCSA from 20% to 25%, and resulting in a 25% increase in PN's share of MCSA dividend flows. Through PN, MCSA has provided long-term, far-reaching benefits to more than 90,000 individual and institutional B-BBEE shareholders.
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."
MCG joins five companies listed in the media sector on the JSE, which prior to the MCG listing contributed 9% to the total market capitalisation of the JSE (R1.39 trillion).
