BY Oluseyi Awojulugbe
Naspers, South African broad-based multinational internet and media company, has announced plans to dispose of its shares in Multichoice.
In a notice posted on its website, Naspers said it would list the company on the Johannesburg Stock Exchange.
Multichoice is the owner of pay-TV service, DSTV.
Naspers, who holds a 31% stake in Multichoice, said the shares of the new company will be given to existing shareholders.
The new company, Multichoice Group, will include MultiChoice South Africa Holdings, MultiChoice Africa Holdings, MultiChoice Botswana, MultiChoice Namibia, NMS Insurance Services SA Ltd, Showmax and Irdeto Holdings.
“This marks a significant step for the Naspers Group as we continue our evolution into a global consumer internet company. Listing MultiChoice Group via an unbundling aims to unlock value for Naspers shareholders and at the same time create an empowered, top 40 JSE-listed African entertainment company,” Bob van Dijk, Naspers CEO, said.
“Even in markets like Europe, people still have traditional TV services and on top of that people have connected services. In Africa the story is even more positive — you see very significant growth in traditional TV … as well as decent take-up already in SA of [streaming services] DStv Now and Showmax. I’m confident it’s a growth story.
“I feel confident about putting the business on its own legs.”
The unbundling will take place in the first half of 2019.
Naspers started Multichoice Africa in 1996.
JP Morgan, an American bank, calculated that Naspers’ MultiChoice unit is worth $8 billion with more than 90% of that value in South Africa.
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