Multichoice Group, the parent company of DSTV, faced a significant financial blow with the liquidation of Heritage Bank, where it had an account balance of N31.6 billion.
According to Multichoice’s FY 2024 annual report, the group had a deposit of N33.7 billion (488 million South African Rands) with Heritage Bank as of March 31, 2024, as reported by Nairametrics.
However, cash remittances reduced this balance to N31.6 billion (400 million South African Rands) before the bank’s liquidation on June 3, 2024.
This substantial deposit has raised concerns for Multichoice, as it far exceeds the N5 million maximum payout guaranteed by the Nigeria Deposit Insurance Corporation (NDIC).
The annual report states that the group plans to engage with the NDIC to “ensure a reasonable outcome is achieved.”
In a press release dated June 3, 2024, the NDIC announced Heritage Bank’s liquidation, stating that depositors with funds exceeding N5 million would receive a liquidation dividend, dependent on the realization of the bank’s assets and debt recovery.
The NDIC has initiated a public bidding process for the sale of Heritage Bank’s assets, as noted in a newspaper advertisement on June 13, 2024:
“The Nigeria Deposit Insurance Corporation in the exercise of its rights as Liquidator of failed Deposit Money Banks hereby invites interested members of the general public to buy the assets (landed property and chattels) of defunct Heritage Bank through public competitive bidding.”
Multichoice and Heritage Bank had previously maintained strong ties, with the bank sponsoring major Multichoice events such as Big Brother Naija and the Africa Magic Viewer’s Choice Awards (AMVCA).
In its FY 2024 annual report, Multichoice Group also reported a repatriation of $184 million from Nigeria, marking a 39.4% increase from the $132 million repatriated in the previous fiscal year.
