28 August 2017
Welkom Yizani, the broad-based black economic empowerment scheme which holds a 15% stake in Media24, will receive a special cash dividend from the unbundling of Novus, Media24 announced today.
This follows the Competition Tribunal’s recent approval of the merger between Media24 and Novus Holdings, filed in February 2016, on condition that Media24 sells its majority shareholding in the printing company in which it holds a 66% share. The Tribunal ruled that Media24 should distribute enough of its shares in Novus to the shareholders of Naspers Limited, to ensure that Media24 will retain a non-controlling minority interest of 19% in Novus post the unbundling.
Welkom Yizani shareholders were informed today that the special cash dividend will not be less than R14,79 per Welkom Yizani ordinary share. This is before dividend tax of 20%. The special dividend is proportional to Welkom Yizani’s 15% shareholding in Media24.
Media24 said it would declare the special cash dividend so Welkom Yizani shareholders could share in the proceeds of the unbundling. Naspers would not participate in this special cash dividend, it said.
At the 11th annual general meetings of Media24 and Welkom Yizani (AGMs) today, an ordinary dividend of 42,5 cents per share was also declared and approved by shareholders. After dividend tax of 20%, each ordinary shareholder will receive 34 cents per ordinary share.
In a special SENS announcement today, shareholders were cautioned that the special cash dividend would be paid during September 2017 and that it could affect the Welkom Yizani share price.
Welkom Yizani shareholders were advised to continue to exercise caution when trading Welkom Yizani shares until the special cash dividend was declared by the Welkom Yizani board
Welkom Yizani is the biggest broad-based black economic empowerment scheme in the South African media industry.
For queries, please contact the Welkom Yizani call centre on 0860 12 12 24.