French media giant Canal+ is restructuring MultiChoice to align with South African regulations on foreign ownership. The plan involves splitting MultiChoice into two independent entities:
1. LicenceCo – A new entity that will hold the broadcasting license, majority-owned by historically disadvantaged persons (HDPs), including Phuthuma Nathi, Identity Partners Itai Consortium, Afrifund Consortium, and a Workers’ Trust.
2. MultiChoice Group – Will retain a 49% economic interest and 20% voting rights in LicenceCo, while continuing to operate its video entertainment business.
This move ensures compliance with South Africa’s Electronic Communications Act, which restricts foreign control of broadcasting licences, while also maintaining Broad-Based Black Economic Empowerment (BBBEE) credentials.
For subscribers, service continuity is assured as LicenceCo will enter commercial agreements with MultiChoice subsidiaries. This restructuring could also attract new investors and set a precedent for future multinational acquisitions in regulated markets like South Africa.
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