MultiChoice’s broad-based black economic empowerment companies, Phuthuma Nathi Investments 1 and 2, will receive ordinary and special dividends worth R900m, the Naspers-owned pay-television broadcaster said on Thursday.
The companies will receive an ordinary dividends of R480m, compared to R400m paid last year, along with a special dividend of R420m.
In turn, the companies will pay shareholders an ordinary dividend of 142,2c per ordinary share plus a special dividend of 124,4c per ordinary share. This means Phuthuma Nathi shareholders will receive dividends amounting to 266,7c per ordinary Phuthuma Nathi share, compared to 118,5c paid last year, an increase of 125%, MultiChoice said.
“The ordinary dividends received by Phuthuma Nathi shareholders have more than tripled, growing from 43,3c/ share in 2007 to 142,2c/share in 2013,” said MultiChoice South Africa executive chairman Nolo Letele. “With this year’s special dividend, Phuthuma Nathi shareholders have to date received R6,88/share.”
The special dividends have also been paid to reduce the original debt when the scheme launched in 2006. If MultiChoice continues to do well and is able to pay dividends, the preference share debt will be paid off in the coming years and the amount of dividends received by shareholders should increase even further over time, the company said.
Phuthuma Nathi shares started trading publicly on 8 December 2011. The trading platform for the companies hosted about 16 000 deals to date, representing a volume of 10,9m shares traded.
Mandla Langa, who chairs both Phuthuma Nathi companies, said 87% of shareholders had held on to their shares since inception of the schemes. “Shareholders who bought Phuthuma Nathi shares when the schemes launched in 2006 and 2007 at R10/share have seen a significant increase in the value of their investment. For example, the Phuthuma Nathi shares closed at R102/share on 02 September 2013, representing capital growth of more than 900%.” — (c) 2013 NewsCentral Media