Subscription TV firm MultiChoice has announced that over 90 000 "people of colour" have expressed interest in its empowerment scheme - a R2.25 billion share sale initiative.
Codenamed "Phuthuma Nathi", the share offer closed at 3pm on Friday afternoon, having been extended by a week. The offer ran for five weeks, from 29 September to 3 November.
"The MultiChoice share offer has elicited huge interest among black South Africans," says the broadcaster's CEO Nolo Letele. "More than 90 000 applications were received, and the offer was oversubscribed."
The fact that it was oversubscribed should not mean that any valid applications are denied, explains communications manager Marilyn Watson. All it will mean is that some people may receive slightly fewer shares than applied for, she adds.
Exceeding expectations
A partnership with the Post Office, and a promotional drive across many mediums, meant the scheme received excellent visibility. About 350 000 prospectuses were distributed, and MultiChoice embarked on 15 roadshows, adds Letele.
"The response from the public was heartening - this exceeded our expectations," commented Koos Bekker, CEO of MultiChoice's parent company Naspers, in a statement.
Phuthuma Nathi Investments shares will be 20% funded through cash raised from black investors and 80% funded by Naspers. It represents a 15% stake in MultiChoice.
"The Phuthuma Nathi share offer was open to African, coloured and Indian individuals and black groups in SA," explains a MultiChoice statement.
The process
Watson says the next step involves applications getting confirmed, and shares being allocated.
Later this week, she says, MultiChoice will release further information on when the applications will be confirmed, and also on exactly how many shares were applied for.
She is unable to divulge any of the applicants' names, so it is unclear as to whether any prominent black investors were attracted to the scheme. However, the scheme is aimed at being as "broad-based" as possible.
The share offer was extended by one week, and Watson explains this was because some individuals needed further time to arrange bank loans, and others only received salaries on 31 October.
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