[South Africa] MultiChoice declares R1.5Bn payment to Phuthuma Nathi shareholders
MultiChoice South Africa (MCSA) has declared a dividend of R1.5 billion to Phuthuma Nathi (PN) shareholders, an increase of 13.6% from 2018.
The additional 5% share allocation given to PN, as part of MultiChoice Group’s (MCG) listing, contributed to the increase in dividend declared to PN shareholders.
PN is one of the most successful Broad-Based Black Economic Empowerment (B-BBEE) schemes in South Africa. It is a scheme that is truly broad-based, with black shareholders from all walks of life. PN owns a 25% stake in MCSA, the South African operations of MCG, being MCSA.
“We are pleased to announce an increased dividend to our Phuthuma Nathi shareholders despite tough economic conditions,” says MCG CEO Calvo Mawela. “The Phuthuma Nathi schemes have now been running for about 13 years and we’re proud that we are able to share our success with thousands of black South Africans. The dividends are a way we can demonstrate our thanks to our shareholders for the role they have played in transforming MultiChoice South Africa.”
In February 2019, MCG listed on the JSE and thereafter was unbundled from Naspers. As part of this transaction, the PN companies were allocated an additional 5% share allocation in MCSA, which increased PN’s shareholding from 20% to 25%. This additional 5% allocation is a substantial contribution by the MCG to PN and reinforces the MCG’s commitment to broad, socio-economic transformation in South Africa.
By September 2019, approximately R11.9 billion will have been paid in dividends to PN companies. Some of the PN shareholders have used the dividends they have received to build homes for their families, pay for university studies for their children and buy investments for retirement.
“This is another demonstration of MultiChoice’s continued commitment to broad-based black economic empowerment and to furtherenhance the value for Phuthuma Nathi shareholders,” Chairman of Phuthuma Nathi, Mandla Langa concludes.