CAPE TOWN – MultiChoice South Africa on Wednesday declared a R1.5 billion dividend to broad-based black economic empowerment (B-BBEE) scheme Phuthuma Nathi (PN) shareholders.
This reflects an increase of 13.6 percent from 2018, according to a statement released by the company.
MultiChoice chief executive Calvo Malewa said the pay-TV service provider was pleased to announce an increased dividend to the PN shareholders, despite tough economic conditions.
“The PN schemes have now been running for about 13 years and we’re proud that we are able to share our success with thousands of black South Africans,” he said.
In February, MultiChoice listed on the JSE and was thereafter unbundled from Naspers. As part of this transaction, the PN companies were allocated an additional 5 percent share allocation, which increased PN’s shareholding from 20 to 25 percent.
PN chairperson Mandla Langa said this was another demonstration of MultiChoice’s continued commitment to B-BBEE and to further enhance the value for PN shareholders.
MultiChoice workers recently went on strike in protest against potential retrenchments at the company's customer care division. The Information and Communication Technology Union (ICTU) proposed an alternative voluntary severance package – which includes R200 000 ex gratia, six weeks of pay for each year completed and a R50 000 study grant – for MultiChoice workers who went on strike.
The union's media officer Thabang Mothelo said the union was prepared to accept such a package if MultiChoice failed to meet its initial demand.
The group executive for corporate affairs Joe Heshu said MultiChoice remained committed to continuing to consult with labour on the proposed restructure in the company's customer care division.