Naspers sells stake to BEE

JOHANNESBURG – South Africa’s biggest media group, Naspers Ltd, has agreed to sell a 15 per cent stake in its lucrative pay-TV unit for 2,25 billion rand to black investors, the firm said on Tuesday.

Phuthuma Nathi will buy 45 million shares in MultiChoice South Africa (MCSA), which has 300 million shares in issue, a statement said. The deal is based on an equity value of MCSA of 15 billion rand and an enterprise value of 17,43 billion rand, it added.MCSA is Africa’s only pay-TV network with more than one million subscribers in South Africa.The deal is in line with South Africa’s Black Economic Empowerment programme that seeks to involve blacks in the mainstream economy after being excluded during apartheid.Under the deal, Phuthuma Nathi will offer 45 million shares to black South African citizens at 10 rand per share, allowing for exposure to the underlying MCSA shares which are worth 50 rand per share.Phuthuma Nathi will finance the remaining 40 rand per share by issuing 180 million of its preference shares at a price of 10 rand to MIH Holdings, the parent of MCSA.Those shares will be redeemable over 10 years.Nampa-ReutersThe deal is based on an equity value of MCSA of 15 billion rand and an enterprise value of 17,43 billion rand, it added.MCSA is Africa’s only pay-TV network with more than one million subscribers in South Africa.The deal is in line with South Africa’s Black Economic Empowerment programme that seeks to involve blacks in the mainstream economy after being excluded during apartheid.Under the deal, Phuthuma Nathi will offer 45 million shares to black South African citizens at 10 rand per share, allowing for exposure to the underlying MCSA shares which are worth 50 rand per share.Phuthuma Nathi will finance the remaining 40 rand per share by issuing 180 million of its preference shares at a price of 10 rand to MIH Holdings, the parent of MCSA.Those shares will be redeemable over 10 years.Nampa-Reuters