Naspers have announced intentions to list their Video Entertainment business separately on the Johannesburg Stock Exchange (JSE) and simultaneously to unbundle the shares in the business to their shareholders. The new company will be named MultiChoice Group and will include MultiChoice South Africa, MultiChoice Africa, Showmax Africa, and Irdeto.
Commenting on the transaction, Naspers CEO Bob van Dijk said; “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.”
Video Entertainment CE Imtiaz Patel said: “Listing and unbundling MultiChoice Group is intended to create a leading entertainment company listed on the JSE that is profitable and cash generative. We offer an unmatched selection of original content made in Africa, for Africans, as well as a world-class sports offering. Our leadership team is diverse, experienced and well-positioned to take the company forward.”
Naspers’ Video Entertainment business is one of the fastest growing top pay-TV operators globally and its multi-platform business entertains 13.5 million households across Africa. In the last financial year, the business generated revenue of ZAR47.1 billion and trading profit of ZAR6.1 billion. It employs more than 9,000 people in Africa and indirectly creates economic prosperity for over 20,000 more who are employed by its various partners and suppliers across the continent.
