Institutions Raise Their Stakes In Recently Listed MultiChoice
9 April 2019
MultiChoice has reported that Allan Gray and Prudential Investment Managers have both raised their stakes in the recently listed pay-TV group.
Prudential’s clients have increased their collective shares in MultiChoice to 5.4%, while Allan Gray has lifted its stakes to slightly above 10%.
Bloomberg data shows that the Boston-based State Street has also decided to top up its stake.
Naspers listed the MultiChoice on the JSE in late February this year by unbundling it to all its shareholders.
An Investment Analyst at Sanlam Private Wealth, Renier de Bruyn said that MultiChoice shares currently offer excellent value and that there is a high potential for long-term investments to be made in the group.
MultiChoice’s massive scale in South Africa and the rest of Africa gives it a significant competitive advantage over potential rivals in the pay-TV sector. The Investment Analyst added that since pay-TV penetration is still low in the region, this provides a lot of room for long-term subscriber growth throughout the continent.
However, De Bruyn also noted that foreign shareholders would have restricted voting rights in the company because of South Africa’s broadcasting requirements. He added that the potential foreign investors might also be deterred by the entrance of new players in the field such as Netflix.