The MultiChoice board will, on Wednesday, recommend to an annual general meeting (AGM) that a dividend of 46c be paid per share to the satellite content provider's shareholders. These include media giant Naspers and the Phuthuma Nathi black empowerment share scheme.
Phuthuma Nathi shareholders own 20% of MultiChoice while Naspers retains the remainder.
MultiChoice corporate affairs GM Jackie Rakitla says there are 337.5 million ordinary shares in circulation.
"The value of the [Phuthuma Nathi] shares were R50 each and sold at R10 per share and R40 was funded through preference shares," Rakitla says.
She adds the dividend will amount to R156 million, of which R125 million "will be used to service debt".
"The remaining R31 million will be divided proportionally among the shareholders of the scheme as an ordinary dividend."
The AGM comes as MultiChoice faces up - for the first time - to the prospect of domestic competition in the satellite space.
Five companies - ODM, Telkom Media, eSat, Walking on Water and MultiChoice Africa - were awarded pay-TV licences in September 2007. Since then, eSat as decided to withdraw from the broadcasting race and etv has opted to be a content provider for MultiChoice.
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