MultiChoice Group Limited has issued a formal update to its shareholders regarding ongoing equity funding arrangements for Showmax Africa Holdings Limited (SMAH), a key joint venture with NBCUniversal Media, LLC, a subsidiary of Comcast Corporation.
This follows the initial announcement made on SENS (Stock Exchange News Service) on 26 September 2024, which outlined that in line with the shareholders agreement for SMAH, MultiChoice Group Holdings B.V. (MGHBV)—a wholly owned subsidiary of MultiChoice—and NBCUniversal committed to provide equity funding to SMAH in proportion to their respective ownership stakes.
Under the terms of the agreement, the funding is intended to meet SMAH’s ongoing working capital needs and is disbursed monthly or at other intervals determined by SMAH’s board, depending on budget requirements. This funding is subject to an agreed-upon cap and is structured to support the business’s operational and strategic needs as it continues to grow its presence in the African streaming market.
As per the latest disclosure, and in accordance with paragraph 9.15 of the JSE Limited Listings Requirements, MultiChoice has confirmed that between 27 September 2024 and the date of this announcement, a total of USD 145 million has been jointly provided to SMAH by MGHBV and NBCUniversal. Each party contributed according to their ownership percentages in the business. In addition to this, MGHBV has also independently contributed USD 800,000 in equity funding to cover its own shareholder-specific costs.
The financial performance of SMAH, including its integration into MultiChoice’s consolidated financial results, has been previously reported in the group’s full-year and interim financial statements released on 12 June 2024 and 12 November 2024, respectively.
In line with paragraph 9.11 of the JSE Listings Requirements, the cumulative equity funding provided since 27 September 2024 qualifies as a category 2 transaction. As such, MultiChoice is required to formally disclose this development to shareholders through this announcement.
This funding initiative underscores MultiChoice’s ongoing commitment to the growth and sustainability of the Showmax platform, which continues to be a strategic asset in its digital transformation and content streaming ambitions across Africa.
