Canal+, the French media giant, is in the process of acquiring MultiChoice Group in a deal valued at roughly R55-billion (about US$3-3.2 billion).
As part of that, in July 2025 the South African Competition Tribunal conditionally approved Canal+’s takeover offer.
The approval is conditional because there are various regulatory, ownership and empowerment (BEE/HDP) requirements that need to be met.
What Restructuring Means
To satisfy South African laws (especially around foreign ownership of broadcaster licences and Broad-Based Black Economic Empowerment [B-BBEE] / Historically Disadvantaged Persons [HDP] participation), the companies are reorganising:
LicenceCo carve-out
MultiChoice will carve out its South African broadcasting licence‐holding unit. This new entity—often called LicenceCo—will contract with local (South African) subscribers and hold the broadcasting licence.
The rest of the video entertainment assets (outside SA domestic licensed broadcasting) stay within the main MultiChoice Group.
Ownership & voting rights restructuring
MultiChoice is reducing its voting rights in LicenceCo to 20%, while retaining a 49% economic interest.
The majority of the control (economic and/or voting influence) in LicenceCo will be held by entities meeting HDP / B-BBEE criteria:
Phuthuma Nathi (a long-standing black empowerment vehicle) will hold a meaningful stake.
Other new or restructured shareholders include Identity Partners Itai Consortium (IPIC), Afrifund Consortium, 13th Avenue Investments, and a Workers’ Trust. These are structured either via ordinary shares, or via notional vendor-funded shares that convert over time.
Extraordinary Dividend and related financial movements
There will be an extraordinary dividend declared by LicenceCo / the relevant units worth about R1.375-billion, with Phuthuma Nathi getting a slice (≈ R343.75 million) of it.
Also, as part of the equity reallocation, Phuthuma Nathi will claim a loan (about R3.77 billion) from MultiChoice, to partly fund their ownership stake.
The Rules They Must Comply With
Foreign ownership & voting restrictions: Under South African law (especially the Electronic Communications Act), foreign entities cannot have more than 20% voting rights in entities holding a South African broadcasting licence.
HDP / B-BBEE thresholds: There are requirements that broadcasting licensees must be at least 30% owned by historically disadvantaged persons (which include black South Africans, women, persons with disabilities).
Public interest commitments: To get regulatory approval, MultiChoice & Canal+ committed to things like: • Maintaining SA content (entertainment, sports) funding; • Protecting jobs / no retrenchments for a certain period; • Supporting small, medium, micro enterprises (SMMEs) and HDP participants in audiovisual supply chain.
Key Milestones & Current Status
Phuthuma Nathi shareholder approval: Phuthuma Nathi’s shareholders approved the restructuring plan on 26 August 2025.
Implementation started: As of mid-September 2025 (roughly 16-17 September), MultiChoice has confirmed that all required agreements for the reorganisation have become unconditional. That means the restructuring (LicenceCo creation, share-transfers, etc.) is now active.
Timetable / mandatory offer: Once reorganisation is completed, an updated timetable for Canal+’s mandatory offer for all remaining shares will be released. Before, the long-stop date for completing the offer is 8 October 2025.
Implications & Industry Reactions
For MultiChoice: This injects new capital and potential stability. The company has been under pressure: shrinking subscriber numbers for its linear (traditional) pay-TV business, currency pressures, etc. The deal lets them lean on Canal+ for scale, investment.
For HDP / empowerment shareholders: Major beneficiaries in this setup. Phuthuma Nathi increases its role; workers get ownership via the Workers Trust. It boosts inclusion in ownership and control.
Potential concerns:
Whether the carved-out structure (LicenceCo + rest of group) will maintain content quality, service continuity.
How foreign content & influence will be balanced given the legal caps.
The timeline is tight: some concerns about legislative changes vs. timing for full compliance.
Regulatory satisfaction: Authorities required these steps before giving conditional approval. The fact that the process is moving forward cleanly suggests Canal+ and MultiChoice are meeting their commitments so far. (ITWeb)
Key Figures & Numbers
Metric
Value
Valuation of takeover offer
~ R55 billion (~US$3.1-3.2 billion)
Share price offered by Canal+
R125 per share for remaining shares not already owned.
Economic interest vs voting rights (MultiChoice in LicenceCo)
49% economic interest, 20% voting rights.
Extraordinary dividend declared
R1.375 billion (with ~R343.75 million going to Phuthuma Nathi)
What to Watch Next
Completion of the reorganisation: Once LicenceCo is formally carved out, share transfers to HDP entities / workers are done, etc.
Release of updated timetable: For mandatory offer to all MultiChoice shareholders, including non-South Africans.
Legislative changes: There is talk that foreign ownership voting caps (currently 20%) might be revised upward (to 49%) via legislative changes. But that’s not assured and may take time.
Effects on consumers: Will we see pricing changes, service changes, or content shifts (more local vs imported content)?
Impact on competitors & content creators: Will HDP / BEE participants be able to scale, will there be more investment in local production?
