Shareholders in MultiChoice’s broad-based black economic empowerment scheme Phuthuma Nathi are set for a windfall. They will receive R1,2bn in ordinary dividends in 2015, an increase from R556m in 2014, MultiChoice said on Thursday.
The sizeable increase in the dividend payout – more that twice last year’s – is because Phuthuma Nathi is debt-free for the first time in 2015. The dividend was approved by shareholders at the AGM held on Wednesday.
Shareholders will receive R18,37 for every share they hold.
“Last year we settled outstanding debts in Phuthuma Nathi and shareholders are now realising the benefits. We hope to continue to pay dividends if the company performs well in the future and we are able to pay dividends,” said MultiChoice South Africa Holdings chairman Nolo Letele.
Phuthuma Nathi was launched in 2006. Shareholders were able to trade the shares from 2011. The share price has risen from R10 in 2006 to more than R180 now.
“If a shareholder bought Phuthuma Nathi shares at launch for R1 000 (at R10/share), the shares would be worth more than R18 000 today,” MultiChoice said. Also, shareholders would have received R3 492 for their investment. — © 2015 NewsCentral Media