How rich you would be if you invested in MultiChoice’s BEE scheme
MultiChoice, the video entertainment and internet company, says that black South Africans now own 40% of the company.
On Tuesday, the company said that its board has recommended a R1.3 billion ordinary dividend for its BBBEE companies, Phuthuma Nathi, which is due to be paid to shareholders following an annual general meeting in August.
Citing the Empowerdex Top 100 Empowerment Report, MultiChoice said it is rated the most empowered media company in South Africa, and 12 the most empowered of all South African companies.
Since the scheme was launched in 2006, Phuthuma Nathi companies have received dividends each year, amounting to a total of R6.5 billion to date. After this year’s dividend, the amount will increase to R7.8 billion, the company said.
The Phuthuma Nathi 2 share price closed at R148 per share on 24 June 2016. So, if a shareholder bought Phuthuma Nathi 2 shares in 2007 for R1,000 at R10 per share, the shares would be worth R14,800 on 24 June 2016.
In addition, the shareholder would have received dividends amounting to R5,418 for their R1,000 investment to date.
This means a shareholder who invested R1,000 in Phuthuma Nathi in 2007 would have made a total of R20,218 – 20 times over the past nine years.
Read: MTN Zakhele reveals financial results for 2015
According to Nolo Letele, chair of MultiChoice South Africa, 64% of the company’s directors are black, and almost 70% of its staff are black.
The Phuthuma Nathi companies own 20% of MultiChoice. The remaining 80% of MultiChoice is ultimately held by Naspers as an investor.
Naspers’ South African ownership splits into:
- 26% black South Africans (23% through mandated funds and 2.2% through retail investors which hold beneficial ownership on behalf of black South Africans);
- 50.8% white South Africans (33.7% through mandated funds and 17.1% through retail investors which hold beneficial membership on behalf of white South Africans); and
- 23.2% South African interests, which cannot or have not been classified by race.
MultiChoice South Africa’s ownership, split by race, is now as follows:
- Black South Africans: a total of 40.8% – 20% owned by Phuthuma Nathi and 20.8% owned via Naspers;
- White South Africans: a total of 40.8% owned via Naspers;
- Racially undetermined or indeterminable South Africans: 18.6% owned via Naspers.
More on Multichoice and Naspers
Naspers profit climbs on Tencent, e-commerce boost
MTN buys fibre-to-the-home player from MultiChoice
MultiChoice explains why we can’t have SuperSport-only packages
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