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.”