The South African Competition Tribunal has approved the Proposed Transaction by CANAL+ to buy MultiChoice Group, subject to agreed conditions which include the implementation of the structure announced on 4 February 2025.
As previously disclosed, the agreed conditions include a robust proposal of guaranteed public interest commitments proposed by CANAL+ and MutltiChoice.
The package supports the participation of firms controlled by Historically Disadvantaged Persons (HDPs) and Small, Micro and Medium Enterprises (SMME”) in the audio-visual industry in South Africa. This proposal will maintain funding for local South African general entertainment and sports content, providing local content creators with a strong foundation for future success.
“The approval by South Africa’s Competition Tribunal marks the final stage in the South African competition process and clears the way for us to conclude the transaction in line with our previously communicated timeline. It is a hugely positive step forward in our journey to bring together two iconic media and entertainment companies and create a true champion for Africa,” Maxime Saada, CEO of CANAL+ said.
” I’m excited about the potential this transaction unlocks for all stakeholders, notably South African consumers, creative businesses and the nation’s sporting ecosystem. The combined Group will benefit from enhanced scale, greater exposure to high-growth markets and the ability to deliver meaningful synergies.”
The approval by the Tribunal follows a positive recommendation from South Africa’s Competition Commission as announced on 21 May 2025 and concludes the competition review process in South Africa.
The Parties remain on track to complete the Mandatory Offer by CANAL+ within the timeline announced on 8 April 2025, and prior to the long-stop date of 8 October 2025.
“The announcement marks a significant milestone and is a major step forward for both companies. It reflects the strength of our strategic vision and our ongoing commitment to continue uplifting the communities where we operate,” Calvo Mawela, CEO of MultiChoice Group said.
“We look forward to executing the remaining processes required to complete the transaction and to start building something extraordinary: a global media and entertainment company with Africa at its heart.”
The Parties will now undertake the process needed to implement the structure as previously announced on SENS on 4 February 2025, which meets the requirements of all applicable laws, including the restrictions on foreign ownership and control of South African broadcasting licences contained in the Electronic Communications Act, 2005.
The structure includes MultiChoice (Pty) Ltd (Licence Co), the entity which contracts with South African subscribers, being carved out of the MultiChoice Group and becoming an independent entity, majority owned and controlled by HDPs.
Sipho Maseko And Sonja De Bruyn Join BEE Consortium To Help Canal+ Secure MultiChoice Buyout
Sipho Maseko and Sonja De Bruyn have joined a Broad-Based Black Economic Empowerment (BBBEE) consortium that will play a crucial role in facilitating Canal+’s acquisition of MultiChoice Group.
As part of the transaction, MultiChoice South Africa’s broadcasting licence operations will be restructured into a new independent entity, MultiChoice (Pty) Ltd (LicenceCo). This move ensures regulatory compliance while paving the way for Canal+ to expand its video entertainment footprint across Africa.
Creation of LicenceCo
As part of this restructuring:
- LicenceCo will operate as an independent entity, holding the South African subscription broadcasting licence and contracting directly with MultiChoice’s South African subscribers.
- LicenceCo will be majority owned by Historically Disadvantaged Persons (HDPs), ensuring compliance with Broad-Based Black Economic Empowerment (BBBEE) policies. The ownership structure will include:
- Phuthuma Nathi, which will hold a 27% economic interest.
- Two black-owned and managed investment firms, Identity Partners Itai Consortium and Afrifund Consortium, bringing strategic industry expertise.
- A Workers’ Trust (ESOP), ensuring employee participation in ownership.
- MultiChoice Group will retain a 49% economic interest in LicenceCo, with a 20% voting share.
- MultiChoice Group will maintain its existing 75% direct interest in MultiChoice South Africa, excluding LicenceCo. Phuthuma Nathi will retain its 25% stake in MultiChoice South Africa.
