MultiChoice SA announced today the sale of 45 million shares, or 15% of the company, to black economic empowerment holding group Phuthuma Nathi Investments (PNI).
PNI is a specially created share warehousing consortium that will hold 15% of the shareholding, at R50 a share, bringing the total value of the stake to R2.25 billion.
The structure of the deal will subsequently allow interested black investors to buy the R50 shares at the price of R10 each.
The scheme will open on 29 September and close on 27 October 2006. The minimum investment period is five years, and the shares held by PNI will not be traded during this period. After five years, the shares can be traded between qualifying black investors.
MIHH, the holding company of MultiChoice SA, is funding 80% of the transaction.
"We are excited about the scheme. The idea is to reach a wide and diverse range of black people," says MultiChoice SA CEO Nolo Letele.
"We plan to achieve overall empowerment goals through a phased approach. This transaction represents the first and most important phase of our empowerment schemes."
It is important to note that participants will be investing in shares, and, therefore, no guarantee can be given on the future value of PNI shares, Letele adds.
"We have listed all the risks in the prospectus and we urge all those interested in the deal to read the prospectus to gain a full understanding of the scheme," he says.
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