South Africa’s National Empowerment Fund (NEF) has made an R100m (US$13.56m) equity investment in the satellite TV provider On Digital Media, which is set to launch Top TV, the country’s second pay TV platform, in May.
The NEF will warehouse its stake on…
South Africa’s National Empowerment Fund (NEF) has made an R100m (US$13.56m) equity investment in the satellite TV provider On Digital Media, which is set to launch Top TV, the country’s second pay TV platform, in May.
The NEF will warehouse its stake on behalf of First Aone Trade and Investment 12 (Pty) Ltd. This is a special-purpose vehicle that represents a broad-based black economic empowerment consortium, the kind of group that the NEF supports in order to promote black-owned businesses in South Africa.
The consortium is comprised of Lereko Investment, which is a woman’s group, and several broad-based trusts.
ODM has had over R1bn (US$130m) invested in it as it seeks to become the first challenger to the pay TV incumbent, the Naspers-owned MultiChoice. ODM is 20% owned by satellite operator SES Astra.
The NEF investment ensures that ODM will maintain at least 51% effective black ownership, a black controlled board of directors and at least 50% black executive control at all times.
NEF Chief Investment Officer Frencel Gillion said: “The ODM project creates new capacity in our economy and will contribute directly to the liberalisation of the pay TV sector, thereby offering choice to consumers. The project also leverages local and international best practice and allows the NEF to be at the centre of cutting-edge digital innovation.
“The project is aligned to the investment mandate of the NEF in that ODM will be Black-owned and managed, providing for meaningful participation by Black women and designated groups.”
