Dividends for Multichoice partners

Johannesburg - Digital satellite television operator MultiChoice said on Thursday that its equity empowerment companies, Phuthuma Nathi 1 & 2 will receive an ordinary and special dividend amounting to R1.2bn.

Phuthuma Nathi 1 & 2 would receive R300m of the ordinary dividend declared by MultiChoice. This represented a 25% increase from last year's dividend of R240m.

Phuthuma Nathi in return declared an ordinary dividend amounting to 88.89 cents per ordinary share, up from 71.1 cents paid in 2010, and representing a 25% increase.

Phuthuma Nathi 1 and 2 would also receive a special dividend amounting to R900m from MultiChoice. The special dividend declared would be used to reduce the debt on the preference share loan account, the group said.

Nolo Letele, chairperson of MultiChoice SA group said: "We are pleased to declare a second special dividend, which will further increase the net asset values of Phuthuma Nathi 1 and 2. This special dividend will reduce the Phuthuma Nathi's outstanding debt by 30%."

Mandla Langa, Chairperson of Phuthuma Nathi added: "Phuthuma Nathi 1 and 2 are truly broad based black economic empowerment share schemes and have enabled ordinary black South Africans to invest in an innovative and cutting edge company. It is now 5 years since the share scheme was introduced and more than 2 billion rand in dividends has been received by Phuthuma Nathi."

From December 8, Phuthuma Nathi shares would start to trade on an "Over the Counter" (OTC) basis.

* Multichoice is part of Naspers [JSE:NPN]
* Fin24 is a Naspers publication.