The MultiChoice on Wednesday morning listed on the JSE with a market capitalisation of around R44 billion, while South Africa's broadcasting regulator, Icasa, hours later issued a statement saying it's concerned about Naspers and MultiChoice doing the listing when there's a pending complaint before its compliance committee.
"Today is a proud day for Naspers. Listing MultiChoice Group through an unbundling unlocks value for Naspers shareholders by creating the opportunity for them to own a direct stake in MultiChoice Group, a top-40 JSE-listed African entertainment group," says Bob van Dijk, Naspers CEO, in a statement.
The MultiChoice Group comprises MultiChoice South Africa Holdings, MultiChoice Africa Holdings, MultiChoice Botswana, MultiChoice Namibia, NMS Insurance Services SA, the African division of Showmax, Irdeto Holdings and Irdeto South Africa.
"We are also very pleased to be able to create further value for Phuthuma Nathi shareholders, who, through MultiChoice South Africa, have already participated in one of South Africa’s most successful empowerment schemes."
Calvo Mawela, MultiChoice Group CEO, in the statement says "Today’s listing is an important milestone in our exciting journey of growth".
"As one of the fastest growing pay-TV broadcast providers globally, our strong financial position at listing is backed by attractive long-term growth opportunities in both subscriber numbers and revenue. The MultiChoice Group has a highly cash generative core with no financial debt, and we are poised to deliver value to our shareholders over time."
"We are overwhelmingly positive about MultiChoice Group's future. With the largest pay-TV footprint across Africa, we understand our customers and tailor our offering and services to suit market-specific video entertainment needs."
"This, coupled with a leading content offering, world-class technology and infrastructure, pan-African scale and strong in-country capabilities, positions us well to generate shareholder returns and future growth," said Calvo Mawela.
Meanwhile the Independent Communications Authority of South Africa (Icasa), in a statement issued just after 11:0 after MultiChoice Group already listed, Icasa said it "is noting with concern that the listing of the MultiChoice Group seems to be going ahead when there is a complaint against it before the Complaints and Compliance Committee".
"On 23 January 2019, Khulisa Social Group NPC (Khulisa) lodged a complaint with the CCC against MultiChoice in respect of the listing," says Icasa.
"In its complaint, Khulisa stated that the upcoming listing of the Multichoice Group on the JSE will result in a contravention of Section 13(1) of the Electronic Communications Act 0f 2005 (ECA), as amended."
"Section 13(1) of the ECA states that 'an individual licence may not be let, sub-let, assigned, ceded or in any way transferred, and the control of the individual licence may not be assigned, ceded or in any way transferred to any other person without the prior written permission of the Authority."
"MultiChoice appeared before the CCC on Monday, 18 February 2019 where the licensee argued that the matter was not urgent and that the listing had not taken place. MultiChoice further argued before the Committee that, in any case, there was no past contravention by the licensee and that the CCC had no jurisdiction over future events."
"Icasa is indeed concerned that the listing seems to be going ahead whilst the CCC is still considering representations that were made and yet to make its final recommendations on the matter to Council of the Authority,” said Icasa.
