MultiChoice to debut on JSE’s Top 40


MultiChoice to debut on JSE’s Top 40

Published Date: 2019-02-12 | Source: Stephen Gunnion | Author: Stephen Gunnion

MultiChoice to debut on JSE’s Top 40

The video entertainment business will be included on the index of the JSE's 40 most valuable companies, pushing the lowest-ranking company out.

The JSE has confirmed that MultiChoice Group will be included in the JSE's Top 40 index of the biggest listing companies when it lists on the 27th of this month. The exchange operator said yesterday that the video entertainment business would be added into the same indexes as Naspers based on the terms of its unbundling. At the same time, Naspers's share price will be adjusted to reflect the unbundling.

The unbundling will take place at the close of trade on 1 March, with owners of Naspers's ordinary 'N' shares receiving MultiChoice shares on a one-for-one basis, while holders of its 'A' shares will receive one MultiChoice share for every five 'A' shares held.

If the indexes that MultiChoice is included on have a fixed number of constituents, such as the Top 40, the JSE said the lowest ranked constituent would be removed from the opening of trade on 1 March.

The newly listed company, MultiChoice Group, will including MultiChoice South Africa, MultiChoice Africa, Botswana and Namibia, NMS Insurance Services, the African division of Showmax, and software security and media technology group Irdeto.

Naspers is spinning off MultiChoice so it can focus on its global internet operations, including online food deliveries and classifieds. It also owns close to a third in Chinese messaging and gaming giant Tencent.

It believes that the unbundling will create a leading entertainment business listed on the JSE that is profitable and higher cash generative. It will have limited leverage and will be able to pursue growth opportunities in African media entertainment.

MultiChoice will trade under the share code MCG. The Reserve Bank has already approved the unbundling and listing. Shareholder approval isn't required.

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