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Cape Town - Shareholders of Welkom Yizani, the biggest black economic empowerment share offer in the media industry in South Africa, received an unexpected cash bonus when the board of directors announced a special dividend from the unbundling of Novus on Monday.
The special dividend is proportional to Welkom Yizani’s 15% shareholding in Media24, South Africa's leading media company with interests in digital media and services, newspapers, magazines, e-commerce, book publishing, printing and distribution.
Media24 received R1.4bn from the unbundling of Novus after the Competition Tribunal earlier this month approved the merger between Media24 and Novus Holdings, on condition that Media24 sold its majority shareholding in the printing company in which it holds a 66% stake.
The tribunal ruled that Media24 should distribute enough of its shares in Novus to Naspers [JSE:NPN] shareholders to ensure that Media24 retains a non-controlling minority interest of 19% in Novus, post the unbundling.
Media24’s parent company Naspers, a multinational group of media and e-commerce platforms, is not participating in the special cash dividend.
The board announced at the joint Media24/Welkom Yizani annual general meeting on Monday that shareholders will receive a special cash dividend of not less than R14.79 per Welkom Yizani ordinary share. In addition, the board declared an ordinary dividend of 42.5 cents per share.
The dividends, subject to a dividend tax of 20%, will be paid towards the end of September.
With the special cash dividend, Welkom Yizani shareholders have seen a 185% return on investment in the last 11 years.
* Fin24 is part 24.com, a subsidiary of Media24. Fadia Salie is a Welkom Yizane shareholder.
