MultiChoice has announced its plans to restructure its operations in South Africa to facilitate its sale to the French media giant, Groupe Canal+. The Competition Tribunal has recently approved this US$3 billion deal, provided certain conditions are met, including a reorganisation of MultiChoice South Africa Holdings (MCSAH).
The transaction must overcome two significant regulatory obstacles. First, the Electronic Communications Act limits foreign shareholders’ voting rights in broadcasting licenses to 20%. Second, the Independent Communications Authority of South Africa (Icasa) mandates that broadcasting licensees must be at least 30% owned by historically disadvantaged individuals, including black people, women, and people with disabilities.
On August 4, 2025, MultiChoice shared a notice with shareholders detailing their strategy to comply with these regulations. The company plans to reduce its shareholding in LicenceCo, which holds the broadcasting license in South Africa, to a 49% economic interest and 20% voting rights through agreements with four entities.
Around August 1, 2025, MultiChoice finalised a series of agreements with Phuthuma Nathi, 13th Avenue Investments, the Identity Partners Itai Consortium (IPIC), and the MultiChoice Workers Trust.
Phuthuma Nathi is MultiChoice’s Broad-Based Black Economic Empowerment (BEE) investment vehicle in South Africa. Meanwhile, the MultiChoice Workers Trust aims to benefit LicenceCo employees and key suppliers.
13th Avenue Investments consists of multiple investment entities linked to notable figures in the telecom industry, including Sipho Maseko, the former CEO of Telkom. On the other hand, IPIC is owned by investment entities associated with Sonja de Bruyn, Maxell Nyanteh, Talaleni Moshapo, Ernest Kwinda, and Eugene Govender, all of whom bring considerable expertise and industry knowledge.
The four entities will receive ordinary and notional vendor-funded shares, with limited rights that will gradually convert to full shares as funding requirements are met. Phuthuma Nathi will acquire its stake in LicenceCo via a loan claim of US$210 million from MultiChoice, while 13th Avenue and IPIC will collectively pay US$15 million for their shares.
Additionally, Phuthuma Nathi currently holds a 25% stake in Orbicom, MultiChoice South Africa’s signal distributor, which will increase to 40% as it takes a direct 20% ownership position in Orbicom.
Together, these transactions mean that MultiChoice will divest 26% of its economic interest in LicenceCo and 15% in Orbicom. MultiChoice indicated that this reorganisation does not require shareholder approval since it qualifies as a Category 2 transaction under JSE regulations.
Moreover, MultiChoice and Phuthuma Nathi shareholders are set to receive an extraordinary dividend of US$76 million, of which US$19 million will be allocated to Phuthuma Nathi. MultiChoice stated that issuing this dividend is contingent on successfully implementing the steps outlined in the reorganisation plan.
