# Regulatory Compliance Category > BEE and Employment Equity Forum >  The Naspers BEE deal

## Dave A

Naspers has done a R2.25bn BEE deal - and once again it is an interesting example of how these deals can be structured.



> Under the deal, Phuthuma Nathi will offer 45 million shares to black South African citizens at R10 per share, allowing for exposure to the underlying MCSA shares which are worth R50 per share. 
> 
> Phuthuma Nathi will finance the remaining R40 per share by issuing 180 million of its preference shares at a price of R10 to MIH Holdings, the parent of MCSA. Those shares will be redeemable over 10 years.
> full story from Fin24 here


The leveraging power of the "flow-through" principle.

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## Dave A

It seems the Phutuma Nathi offer was oversubscribed, and Naspers is putting up another 7.5% in shares for reasons stated below:




> Africa's biggest media company, Naspers, will sell an extra 7.5% stake in its Multichoice pay-TV business to black investors after a first stake offer was oversubscribed by almost three times. 
> Naspers announced in September it would sell 15% stakes in two core businesses - Multichoice and its Media24 newspaper and magazine unit businesses - to black investors in two deals worth almost R3bn. 
> 
> In a statement on Monday, the company said it planned to sell the extra 7.5% in Multichoice because its plan to buy rival Johnnic Communications' stake in joint-owned pay-TV channels M-Net and Supersport and inject it into Multichoice would dilute the initial black-owned stake.
> 
> South African companies have to meet quotas on black ownership, procurement and employment as part of a government black economic empowerment (BEE) drive aimed at shifting more of the economy into black hands 12 years after apartheid fell. 
> 
> The new Multichoice stake up for grabs will go to investors who applied to the first offer and were unsuccessful, at the same price of R10 per share. 
> 
> ...


I'm still trying to get to my head around this little bit:

*South African companies have to meet quotas on black ownership, procurement.....*

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