A wind­fall with pro­vi­sos

The ma­jor ben­e­fit will come from in­vestors be­ing able to ref­er­ence the listed Mul­tichoice Group for a price

Financial Mail - - MONEY&INVESTING - Ann Crotty crottya@ti­soblack­star­group.co.za

Even be­fore last week’s Mul­tichoice an­nounce­ment, the Phuthuma Nathi (PN) BEE scheme was con­sid­ered one of the coun­try’s most gen­er­ous. The dra­matic, but not un­ex­pected, an­nounce­ment that Naspers would dis­trib­ute its Mul­tichoice hold­ing to Naspers share­hold­ers as soon as it has sorted out all the reg­u­la­tory obli­ga­tions, men­tioned a fig­ure of R12bn in value cre­ation for PN share­hold­ers.

The po­ten­tial ben­e­fits of the un­bundling process will con­sid­er­ably en­hance this gen­eros­ity, and in the process make other BEE of­fer­ings, such as Vo­da­com’s Ye­boyethu, MTN’S Zakhele and Sa­sol’s In­zalo, look a lit­tle tight-fisted.

Naspers spokesper­son Meloy Horn says or­di­nary div­i­dends paid to PN share­hold­ers since in­cep­tion amounted to R6.2bn and the cap­i­tal gain to an ad­di­tional R5.7bn.

Naspers of­fered el­i­gi­ble black peo­ple an in­di­rect in­ter­est of 15% in Mul­tichoice SA in Septem­ber 2006. The of­fer, which was pitched at R10 a share, was three times over­sub­scribed. About 120,000 ap­pli­cants re­ceived the 45-mil­lion shares on of­fer. A few months later an ad­di­tional 7.5% stake was of­fered to ap­pli­cants who had not re­ceived their full al­lo­ca­tion. This block of shares is now re­ferred to as PN2 while the ear­lier al­lo­ca­tion is re­ferred to as PN1.

The orig­i­nal 22.5% stake in Mul­tichoice was re­duced to 20% when Mul­tichoice shares were is­sued to fund the ac­qui­si­tion of the re­main­ing 40% in­ter­est in M-net/su­per­sport in 2007.

At the end of the first day of over-the­counter trad­ing in De­cem­ber 2011 the share price was at R28, a sig­nif­i­cant ad­vance on the R10 is­sue price but way off the R120 most an­a­lysts had been ex­pect­ing.

In re­cent years the shares have traded as high as R180, but they are more of­ten seen stag­nat­ing

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