Naspers sets date for MultiChoice unbundling

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Naspers sets date for MultiChoice unbundling

Published Date: 2019-01-22 | Source: Stephen Gunnion | Author: Stephen Gunnion | Comments

Naspers sets date for MultiChoice unbundling

If you own shares in Naspers on 26 February the unbundling will give you a direct interest in the group's video entertainment business.

Naspers expects to unbundle and list its MultiChoice business on the JSE by the end of February if all goes according to plan. In a pre-listing statement, the global internet and media business said shares in the video entertainment business would start trading on the JSE on 27 February. Any investors holding Naspers shares as of 26 February would get receive shares in MultiChoice through a pro rata distribution in specie. The shares will be unbundled at the close of trade of Friday, 1 March, with shareholders receiving one MultiChoice share for every one ordinary 'N' share and for every five 'A' ordinary shares held.

Naspers said it had evolved from a traditional media business into a global internet and entertainment group. However, as part of a continuing review of the business, its board determined that there was no strategic rationale for keeping both business lines together and there were no synergies between the global internet and African video entertainment business. 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 Group, will including MultiChoice South Africa, MultiChoice Africa, Botswana and Namibian, NMS Insurance Services, the African division of Showmax, and software security and media technology group Irdeto.

The Reserve Bank has approved the unbundling and listing of MultiChoice and the JSE has approved its admission to the main board under the share code MCG. Shareholder approval isn't required.

Naspers closed 3.3% up at R3,164.85 yesterday. Details of the listing were released after the close of trade.

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