Windfall for MultiChoice BEE shareholders

Shareholders in MultiChoice South Africa’s black economic empowerment scheme, Phuthuma Nathi, will receive a combined R1.4-billion dividend for the financial year ended 31 March 2023, approved at the group’s AGM on Wednesday.

Shareholders will be paid R20.37/share before dividend withholding tax (R16.30 after tax) in the first week of September.

MultiChoice South Africa chair Imtiaz Patel said in a statement on Wednesday: “Despite the challenging macroeconomic environment, which is having a severe impact on our Phthuma Nathi shareholders, the board declared a dividend again this year.”

Phuthuma Nathi has about 77 000 shareholders, including domestic workers, gardeners, professionals, stokvels and small businesses. It has paid dividends every year since the scheme was implemented in 2006. After payment of this year’s dividend, Phuthuma Nathi will have received R17.8-billion in dividends from MultiChoice South Africa, said scheme chairman Mandla Langa.

“If an investor bought 400 Phuthuma Nathi shares in 2006 at R10 per share (an investment of R4 000), their shares would be worth approximately R50 000 (based on a share price of R125 on 4 August 2023). The same investor would have also received dividends (after tax) amounting to R65 000 (including the dividend to be paid in September 2023), bringing the total return on investment to R115 000 – which is 29 times the initial investment,” MultiChoice said.

Windfall

Phuthuma Nathi 1 has yielded a 31% annual return to investors over the past 17 years, of which roughly 16% was capital growth and the remainder dividends received.

Some shareholders are losing out by not claiming their dividends, either because they have failed to update their banking details or have died. “We’ve been trying to reach these shareholders or their family members to pay the money that is rightfully theirs. While we have already paid out R109-million in unclaimed dividends, there is still R204-million to be claimed,” said Langa.  – © 2023 NewsCentral Media

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