Sylvia Duruson
French media giant Canal+ has announced comprehensive plans to restructure MultiChoice through the creation of two distinct entities. The reorganization will establish LicenceCo, holding the broadcasting license, alongside the existing MultiChoice Group structure. This strategic decision aligns with South African regulations governing foreign ownership in broadcasting.
LicenceCo will operate under majority ownership by historically disadvantaged persons, featuring key stakeholders such as Phuthuma Nathi, which will maintain a 27% economic interest. Additional participants include Identity Partners Itai Consortium, Afrifund Consortium, and a dedicated Workers’ Trust established to benefit employees. MultiChoice Group will retain a 49% economic stake and 20% voting rights in LicenceCo.
The restructuring addresses compliance requirements with the Electronic Communications Act while maintaining the company’s Broad-Based Black Economic Empowerment (BBBEE) credentials. Canal+ designed this arrangement to ensure regulatory alignment as it progresses with its acquisition of MultiChoice, demonstrating commitment to South African media ownership regulations.
Subscribers can expect uninterrupted service throughout this transition. LicenceCo will establish commercial agreements with MultiChoice Group subsidiaries to maintain seamless service delivery. The remaining video entertainment assets will continue their operations under the MultiChoice Group umbrella.
This transformation creates opportunities for new investors in South Africa’s media sector. The involvement of BBBEE-focused investors supports the country’s economic transformation goals, promoting diversity within the broadcasting industry. Canal+ continues to strengthen its position in Africa’s broadcasting market through this strategic restructuring.
The arrangement marks a significant development in South African broadcasting history. As Canal+ progresses with increasing its stake in MultiChoice, this restructuring could establish precedents for future multinational acquisitions in regulated markets. The approach balances international investment with local ownership requirements, potentially influencing similar transactions across regulated industries.
Industry observers await regulatory approval as this restructuring unfolds. The outcome could reshape the African media landscape while maintaining compliance with local ownership regulations. This transformation reflects the evolving nature of broadcasting ownership structures in regulated markets, particularly regarding foreign investment and local participation requirements.
