Pay-television provider MultiChoice says its equity empowerment companies, Phuthuma Nathi 1 & 2 will receive ordinary and special dividends totalling R1 billion.
Since Phuthuma Nathi's inception in 2006, shareholders have received dividends every year and total pay-outs so far amount to about R280 million. Phuthuma Nathi shares started public trading on 8 December 2011.
Phuthuma Nathi 1 & 2 will receive R400 million of the ordinary dividend declared by MultiChoice, which is a 33% increase from last year's dividend.
Phuthuma Nathi, in return, declared an ordinary dividend of 118.5c per ordinary share, which is also a 33% increase on last year. The average stock price last month was R50 a share.
MultiChoice says Phuthuma Nathi will also receive a special dividend of R600 million, which will be used to trim debt. Phuthuma Nathi 1 & 2, which has about 120 000 black shareholders that collectively own 20% of MultiChoice SA, is one of the largest empowerment transactions in the listed media sector.
Gaining value
MultiChoice SA chairman Nolo Letele says the shareholders have seen good returns on their investment.
“Phuthuma Nathi shares were bought by BEE shareholders for R10 per share when the scheme launched in 2006. Since then, shareholders have received dividends of R4.21 per share. This, together with the capital growth, means shareholders who invested in Phuthuma Nathi at that time have realised a return of over 400%.”
The special dividend paid by MultiChoice will reduce the original debt of R40 per share to R17 per share, says Letele.
In the year to March, MultiChoice saw revenue gain 16%, to R20.5 billion, while net profit increased 24%, to R4.2 billion, mostly due to organic growth. Its South African subscriber base added 492 000 houses and the overall base was at four million households at the end of March.
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