MultiChoice BEE schemes up 1,300%
MultiChoice has announced that its Broad Based Black Economic Empowerment (BBBEE) companies, Phuthuma Nathi Investments and Phuthuma Nathi Investments 2 are up 1,300% since the launch of these schemes in 2006 and 2007 respectively.
MultiChoice operates the DStv Satellite Television service, and is owned by Naspers.
The group announced on Wednesday (3 September) that outstanding funding obligations for the schemes will be settled after shareholders approved the dividend payments at an annual general meeting in Johannesburg.
Chair of both Phuthuma Nathi companies, Mandla Langa, added that the Phuthuma Nathi share price has recorded consistent growth since public trading began in December 2011.
“On Friday, 29 August 2014, Phuthuma Nathi shares closed at R142.50 per share for PN and R146.56 per share for PN2. This means shareholders who have been with us since the launch of these schemes in 2006 and 2007 respectively would have seen capital growth of over 1,300% on their original R10 investment,’ Langa said.
MultiChoice announced that ordinary dividends for Phuthuma Nathi companies increased by 17% from R480 million in 2013 to R560 million in 2014.
Phuthuma Nathi companies also received a special dividend of R540 million, which will be used to settle their outstanding funding obligations.
As a result, Phuthuma Nathi shareholders will receive a dividend of 165.93 cents per ordinary share plus a special dividend of 586.40 cents per ordinary share. This is a total of 752.33 cents in dividends per ordinary share – up 182% over last year’s 266.66 cents.
Phuthuma Nathi 2 shareholders will receive a dividend of 165.93 cents per ordinary share, along with a special dividend of 801.28 cents per ordinary share. The total is 967.21 cents per ordinary share – an increase of 263% from last year’s 266.66 cents.
Multichoice said that PN2 shareholders receive a higher special dividend as funding obligations for this scheme were lower than PN.
In addition to benefiting from growth in the value of their shares, Phuthuma Nathi shareholders have also received dividends each year, which have grown more than four times.
Adding special dividends paid in 2013 and 2014 brings total dividends received to date by these shareholders to R14.40 per share for PN and R16.65 per share for PN2.
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