Black investors in Phuthuma Nathi, the broad-based black economic empowerment arm of pay-TV operator MultiChoice, will share more than R1.5 billion in dividends.
MultiChoice South Africa (MCSA) announced it has declared a dividend to Phuthuma Nathi shareholders of R1.5 billion.
An ordinary dividend of R22.22 per share before dividend tax (R17.78 after tax) will be paid to Phuthuma Nathi shareholders in the first week of September 2021.
“The economic environment in South Africa combined with the effects of COVID-19 have created tough conditions. Despite these challenges, we’re delighted to declare a dividend,” Imtiaz Patel, MultiChoice South Africa chairman, said.
“We know this will bring much-needed relief to our shareholders during these difficult times. Our share scheme is truly broad-based, which means more than 80 000 black shareholders will benefit from this dividend, including professionals, stokvels, helpers, gardeners and small businesses.”
Phuthuma Nathi shareholders have received dividends every year since the share scheme started in 2006. To date, the total dividends paid to Phuthuma Nathi shareholders, including the current year, is R14,9 billion.
“Phuthuma Nathi is one of the most successful BBBEE share scheme in South Africa. MultiChoice is creating real value with great returns for our shareholders,” Phuthuma Nathi chairman, Mandla Langa, said.
“We have an amount of dividends that have not been claimed. Last year Phuthuma Nathi embarked on a media campaign to find these shareholders.”
“We understand that we live in tough economic times. That is why we embarked on this campaign – we wanted to ensure that our shareholders who have not claimed their dividends, get what is rightfully theirs. I am pleased to say the campaign was a success and to date we have paid more R50 million of these unclaimed dividends.”
The scheme is one of the most successful Broad-Based Black Economic Empowerment (B-BBEE) schemes in South Africa.
It owns a 25% stake in MCSA, the South African operations of MCG, being MCSA.
In February 2019, MCG listed on the JSE and thereafter was unbundled from Naspers. As part of this transaction, the Phuthuma Nathi companies were allocated an additional 5% share allocation in MCSA, which increased the company’s shareholding from 20% to 25%. This additional 5% allocation is a substantial contribution by the MCG to Phuthuma Nathi and reinforces the MCG’s commitment to broad, socio-economic transformation in South Africa.