MultiChoice Group and French media giant Canal+ have announced plans to restructure the South African pay-TV giant to comply with local broadcasting regulations. This follows Canal+’s acquisition of a 45.2% stake in MultiChoice, triggering mandatory takeover proceedings.
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To address regulatory hurdles, particularly restrictions on foreign ownership and control of broadcasting licenses, the companies propose a new structure. A separate entity, “LicenceCo,” will be created to hold the South African operating licenses.
LicenceCo will be majority-owned by historically disadvantaged South Africans, including Phuthuma Nathi, a leading black economic empowerment scheme. MultiChoice Group will retain a 49% economic interest and 20% voting rights in LicenceCo.
This restructuring aims to ensure compliance with South African law while enabling MultiChoice Group to leverage its expertise and content to continue serving South African subscribers. Canal+ and MultiChoice believe this structure will create a unique global media company with a strong presence in Africa.
The transaction is subject to regulatory approvals from various bodies, including the Financial Surveillance Department, Competition Tribunal, JSE, Takeover Regulation Panel, and the Independent Communications Authority of South Africa (Icasa).