Naspers may list MultiChoice

Naspers is considering separate listings for certain companies within its group, according to a report by BusinessLive.

This includes MultiChoice, said Naspers CEO Bob van Dijk.

The report stated that the move is aimed at reducing the discount to the value of its holdings – with the company trading at “a discount to net asset value of about 40%”.

Van Dijk said listing MultiChoice would not be easy, however, as investment vehicles like MultiChoice’s Phuthuma Nathi must be taken into account.

“Whether it’s the right thing to consider a spin-out is really one of the options the board will consider,” he said.

The news comes after van Dijk stated that their TV and media operations must remain relevant to consumers, and that he does not think people will be reading newspapers or watching linear TV five years from now.

Not the first time

This is not the first time Naspers has indicated interest in separating MultiChoice from the group, though.

In May 2017, sources told MyBroadband MTN was in discussions regarding a potential acquisition of MultiChoice Africa.

MultiChoice and Naspers declined to answer questions on the potential sale at the time.

In June 2016, MultiChoice South Africa Holdings chairman Nolo Letele said it would make sense to list the pay-TV company on the JSE.

The requirement of its broadcasting licence that 30% of its equity be black-owned made it difficult to do so.

Naspers also announced this week that it was selling 190 million of its Tencent shares, reducing its holdings to 31.2% in the company.

The move is aimed at closing Naspers’ valuation gap.

Now read: SABC COO meeting unions unhappy with plan to commercialise SAfm

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Naspers may list MultiChoice