Johannesburg - The shares of media group MIH Holdings and its controlling shareholder Naspers extended gains yesterday following Wednesday's announcement MIH had sold its stake in OpenTV to the US's Liberty Media for $185 million.
MIH gained a further 18.75 percent, or 150c, to close at R9.50, while Naspers added 9.52 percent, or 200c, to close at R23.
MIH held its interests in OpenTV through subsidiary MIH Limited, which is listed on the Nasdaq and Amsterdam bourse.
In a teleconference call with analysts yesterday, the MIH management, led by chief executive Cobus Stofberg, said it would use the proceeds from the sale to strengthen its balance sheet and support MIH's growth strategy.
Stofberg said: "Our intention is very much to concentrate future investment into developing our core subscriptions platforms, and acquisitions are possible in that area."
He said MIH would focus on delivering competencies on its subscriber platforms business, the growth of which would come from the migration of analogue subscribers to digital.
It would also expand its internet and pay television business especially in sub-Saharan Africa and grow instant messaging business in Asia.
Its subscriber platforms - which include MultiChoice Africa and M-Net/SuperSport with more than two million subscribers, contribute about 80 percent to MIH's revenues.
MIH's businesses also include internet operator M-Web, subscriber management software company Mindport, and interests in Thailand-based television operator UBC.
Analysts viewed the sale of OpenTV as positive to MIH, helping it reduce risk, debt and losses that stood at R1.2 billion for the year to November 2001.
Steve Ward, MIH's chief financial officer, said yesterday the group was not under pressure to pay back debt, and would take its time deciding what to do with its cash from the sale.
Stofberg ruled out any possibility of MIH taking a strategic minority stake in Liberty Media, which could be possible as the deal would be settled with $38.85 million cash with the balance in either cash or Liberty Media shares.