MultiChoice Restructures for Canal+ Takeover with New Investors and Licensing Changes

MultiChoice Group is undergoing a strategic reorganisation of its South African operations in preparation for its acquisition by French media giant Canal+. The company announced plans to introduce new investors to align with South African regulations limiting foreign ownership of locally licensed broadcasters to no more than 20% voting rights [1]. This reorganisation includes the creation of LicenceCo, a new entity to hold MultiChoice’s broadcasting licence, which will be majority-owned by Historically Disadvantaged Persons (HDPs) and workers, ensuring compliance with the Electronic Communications Act (ECA) [2].

The reorganisation also involves the transfer of 26% of the economic interest in LicenceCo and 15% in Orbicom—MultiChoice’s signal distributor—to new stakeholders. Phuthuma Nathi, a listed broad-based black economic empowerment vehicle, will increase its stake in Orbicom from 25% to 40%. The restructuring aims to maintain regulatory compliance while supporting local ownership and empowerment initiatives [3]. As part of the plan, MultiChoice will declare an extraordinary dividend of 1.375 billion rand to its shareholders, with 343.75 million rand allocated to Phuthuma Nathi [4].

The Competition Tribunal approved the $2 billion acquisition of MultiChoice by Canal+ in July 2025, following a recommendation from the Competition Commission. The approval came with conditions to protect local content development, skills training, and corporate social responsibility, including a $1.4 billion three-year commitment to these initiatives [5]. The new structure is designed to preserve the integrity of broadcasting and signal distribution licences and to ensure continued market competition [6].

The deal is expected to reshape the African media landscape, as Canal+ gains a dominant position in South Africa through DStv and GOtv. The combined entity is anticipated to leverage synergies in content production and digital innovation. However, the success of the integration will depend on maintaining service quality and managing the transition effectively [7]. The reorganisation process is already underway, with shareholders being offered shares in the new entity as part of the mandatory takeover offer. If finalized, shareholders may see their stake in MultiChoice converted entirely into Canal+ shares [8].

The conditional approval of the deal reflects regulatory caution regarding cross-border media acquisitions. While the Competition Commission found the merger unlikely to harm competition, it imposed safeguards to prevent market distortions, including job protection and continued investment in local content [9]. As the acquisition moves toward finalisation, the focus remains on ensuring a seamless transition for employees, customers, and stakeholders, with the restructuring and introduction of new investors seen as critical to the long-term success of the merged entity [10].

Source: [1] MultiChoice enters reorganisation agreements before ... (https://www.ajbell.co.uk/news/articles/multichoice-enters-reorganisation-agreements-canal-takeover)

[2] MultiChoice set to acquire new investors to modify Canal+ ... (https://technext24.com/2025/08/04/multichoice-set-to-acquire-new-investors/)

[3] MultiChoice Group Ltd has announced a strategic reorganisation ... (https://coinmarketcap.com/community/articles/68909d2f0fd8ee5bbb70c706/)

[5] Canal+ gets conditional approval for MultiChoice takeover. (https://www.marketscreener.com/news/how-ai-is-changing-music-recording-academy-ceo-ce7c5edada8af72d)