M-WEB to list on The JSE

To exploit the opportunities created by the rapid growth of the Internet, MIH Holdings (MIHH) will be spinning off its Internet business, M-Web Holdings as a separate company. M-Web will be capitalised to the tune of R550m. MIHH intends raising approximately R350m through a renounceable rights offer to its ordinary shareholders, while the balance will be funded from its own resources. Following the rights offer, the shares of M-Web Holdings will be unbundled as a dividend in specie to all MIHH shareholders on a one-for-one basis. Thereafter these MIH/M-Web shares will be listed on the JSE as linked units with MIHH on the basis of one M-Web share for one MIHH share. Consequently, when these shares are delinked at some future date, shareholders will be offered a choice of vehicles in which to invest. M-Web was formed in January 1997 following MIHH`s acquisition of World Net Africa and CompuServe in December 1996 as an extension of its multimedia and entertainment interests. Since then M-Web has acquired service provider PiX Internet, as well as the controlling interest in Electronic Mail & Guardian. The interests transferred to M-Web includes Computicket. Today www.mweb.co.za has, in conjunction with eM&G, become the most visited site in South Africa according to the ABIS audited figures. M-Web offers a wide spectrum of interactive and other services ranging from general entertainment, news and sport to expert forums and e-commerce. "In view of the phenomenal growth of the corporate and residential sector of the Internet, M-Web is making big investments in the expansion of its network and technical infrastructure, as well as in people," says M-Web CEO, Antonie Roux. "We aim to be the leading South African provider of access to and information via the Internet." Currently M-Web is gaining some1 000 new customers every week. It is the second largest South African Internet service provider to the residential market, and rapidly expanding its share of the corporate market. "The separate listing of M-Web will allow us to focus solely on the Internet. The capital raised will fund M-Web`s operating cash-flow, working capital and capital expenditure over the next three years." Roux says the listing on the JSE will allow the management of MIHH to concentrate on growing its business both locally and abroad. It will also give M-Web greater visibility and credibility, not only within the local financial community, but also internationally. Roux predicts that in five years residential and business Internet markets in South Africa will be a massive industry.