MultiChoice CEO Calvo Mawela highlighted ongoing progress on the acquisition deal with Canal+, which is expected to conclude later this year.
Last month, MultiChoice detailed its new operational structure, contingent on Canal+’s approval of its buyout offer for the shares it does not currently own. Canal+ has proposed acquiring MultiChoice shares at R125 each.
Over recent years, Canal+ has progressively increased its stake in MultiChoice by purchasing shares on the open market. A mandatory buyout offer was triggered once Canal+ reached the 35% ownership threshold at the start of 2024. The proposed price values MultiChoice at around US$2,9 billion, and with Canal+ owning over 45%, the transaction could cost them approximately US$1,6 billion in cash.
However, the deal faces notable challenges, especially due to South Africa’s foreign ownership regulations. The Electronic Communications Act (ECA) limits foreign control of commercial broadcasting services to 20%. MultiChoice has asserted that its Memorandum of Incorporation (MOI) includes measures that maintain compliance with the ECA, ensuring that voting rights for foreign owners remain limited to 20%.
In a SENS announcement dated February 4, 2025, MultiChoice outlined that post-transaction, a portion of its business holding the South African broadcasting license will be established as LicenceCo. This entity will manage contracts with local subscribers, while the rest of MultiChoice’s video entertainment assets will remain part of the MultiChoice Group.
LicenceCo will be primarily owned by historically disadvantaged individuals, including:
- Phuthuma Nathi with a 27% economic stake
- Black-owned firms Identity Partners Itai Consortium and Afrifund Consortium
- Workers’ Trust (ESOP)
MultiChoice Group will maintain a 49% economic interest with 20% voting rights in LicenceCo to ensure compliance with the ECA. The company will also retain a 75% stake in MultiChoice South Africa, exclusive of LicenceCo, while Phuthuma Nathi will hold onto its 25% interest.
The Canal+ deal and MultiChoice’s revised structure are currently under review by the Competition Commission and the Independent Communications Authority of South Africa (ICASA). On March 4, 2025, MultiChoice announced it actively seeks merger control clearance from South African competition authorities. However, due to potential delays in completing these processes, the previous deadline of April 8, 2025, for fulfilling all conditions has been extended to October 8, 2025.
This extension is in agreement with the Takeover Regulation Panel (TRP). Canal+ and MultiChoice expressed confidence that the new timeline will allow sufficient opportunity to meet the necessary conditions. Canal+ CEO Maxime Saada emphasized the importance of this transaction and the company’s commitment to its successful completion.
Meanwhile, MultiChoice Group CEO Calvo Mawela reaffirmed the dedication of their teams to this transaction, aiming to generate significant value for customers, shareholders, and all stakeholders involved.
