Africa's biggest media company, Naspers, will sell an extra 7.5% stake in its Multichoice pay-TV business to black investors after a first stake offer was oversubscribed by almost three times.
Naspers announced in September it would sell 15% stakes in two core businesses - Multichoice and its Media24 newspaper and magazine unit businesses - to black investors in two deals worth almost R3bn.
In a statement on Monday, the company said it planned to sell the extra 7.5% in Multichoice because its plan to buy rival Johnnic Communications' stake in joint-owned pay-TV channels M-Net and Supersport and inject it into Multichoice would dilute the initial black-owned stake.
South African companies have to meet quotas on black ownership, procurement and employment as part of a government black economic empowerment (BEE) drive aimed at shifting more of the economy into black hands 12 years after apartheid fell.
The new Multichoice stake up for grabs will go to investors who applied to the first offer and were unsuccessful, at the same price of R10 per share.
The bulk of the holdings are meant to benefit ordinary black South Africans, who are paying what analysts say is a bargain price.
The stake offers took place via two holding companies - one with a stake in Multichoice and another with a stake in the Media24 newspaper and magazine businesses.
From Fin24 here (a Naspers group company)