MultiChoice and Canal+ are optimistic about clearing the final regulatory barriers for Canal+’s bold takeover of the South African pay-TV giant by October 2025
In a joint announcement on Tuesday, the two companies revealed that they are on track to meet the necessary conditions for the acquisition, with the deadline extended from April to October 2025
Canal+’s mandatory offer to MultiChoice shareholders began in June 2024 and will close on April 25, 2025
In February, the companies disclosed a new plan to address regulatory concerns that could hinder the foreign ownership of a South African media company. The strategy involves restructuring MultiChoice to isolate its South African broadcasting licence and subscriber contracts into a separate entity, LicenceCo.
Under this new structure, LicenceCo will retain the broadcasting licence and continue to handle South African subscriber contracts. Meanwhile, the rest of MultiChoice’s video entertainment operations will remain under the umbrella of the MultiChoice Group, which will focus on content supply.
This strategic move is designed to meet the regulatory requirements for Canal+ to move forward with the acquisition. Both companies need approval from several South African authorities, including Icasa, the Takeover Regulation Panel, the Competition Tribunal, and shareholders. Additionally, Canal+ must comply with black-economic empowerment (BEE) regulations and ensure its voting rights do not exceed the 20% cap imposed by the Electronic Communications Act.
