This morning a new company has graced the halls of the Johannesburg Stock Exchange though it’s a name you’re likely to know – MultiChoice Group.
As you might recall, in September 2018, Naspers unbundled its video entertainment business which included MultiChoice.
Following this unbundling a new company was birthed in MultiChoice Group which includes MultiChoice South Africa, MultiChoice Africa, Showmax Africa and MultiChoice Botswana among others.
This morning the firm was listed on the JSE.
“We have an experienced team in place to lead the group in the next part of its journey. We have the benefit of continental scale, with strong local capabilities,” MultiChoice told Fin24.
Trading appears to have opened well with MoneyWeb reporting stock was trading at R105.04 after opening at R95.50.
However, the Independent Communications Authority of South Africa has noted the listing of MultiChoice Group on the JSE “with concern”.
In a statement sent to Hypertext this morning Icasa says that despite the fact that there is a pending complaint regarding the listing of MultiChoice Group on the JSE, the listing has gone ahead.
The authority says that the complaint alleges MultiChoice Group has contravened Section 13(1) of the Electronic Communications Act of 2005.
“Section 13(1) of the ECA states that ‘an individual licence may not be let, sub-let, assigned, ceded or in any way transferred, and the control of the individual licence may not be assigned, ceded or in any way transferred to any other person without the prior written permission of the Authority,” Icasa explains.
“ICASA is indeed concerned that the listing seems to be going ahead whilst the CCC is still considering representations that were made and yet to make its final recommendations on the matter to Council of the Authority,” it added.
Of course, Icasa’s concern could be unwarranted but, perhaps MultiChoice Group should have waited for Icasa to make final recommendations.
That having been said, folks can buy MultiChoice Group shares right now and barring a dramatic announcement from Icasa, we don’t suspect that will change in the near future.
[Image – CC 0 Pixabay]