Connect with us

Business

Multichoice Prepares for R55 Billion Takeover by Canal+: What It Means for South African Customers

Published

on

In a landmark move that could reshape the South African broadcasting sector, Canal+ has made an offer to buy the remaining shares of Multichoice for an estimated R55 billion. This takeover comes as Canal+ looks to strengthen its foothold in Africa’s media landscape. But what does this mean for the millions of South African customers who rely on Multichoice for their entertainment needs?

The Key Features of the Takeover

The acquisition would lead to a restructuring of the Multichoice Group, with a major shift in how the company operates in South Africa. The broadcasting licence and the entity contracting with South African subscribers, known as Multichoice (Pty) Ltd (LicenceCo), will be spun off into a new, independent entity.

The new LicenceCo will remain majority-owned by Historically Disadvantaged Persons (HDPs), including Phuthuma Nathi—a BBBEE share scheme with over 70,000 shareholders. It will also include well-established black-owned entities such as Identity Partners Itai Consortium and Afrifund Consortium, as well as a Workers’ Trust (ESOP).

Multichoice Group will retain a significant interest in LicenceCo, holding 49% of the economic interest and 20% of the voting rights, while continuing to have control over its South African operations, which will remain separate from LicenceCo.

What Does This Mean for South African Subscribers?

Despite these structural changes, South African viewers won’t see any disruptions in their service. LicenceCo will continue to provide the same content and customer support to its subscribers, with no immediate changes to pricing or access. In fact, the restructuring could bring improvements, as Multichoice has indicated plans for increased investment in content and technology, which could ultimately benefit viewers.

Multichoice and Canal+ have also promised that the deal complies with all relevant laws, including those restricting foreign ownership of broadcasting licences in South Africa. They have already filed the necessary documents with the South African Competition Commission, with the transaction awaiting approval from regulatory bodies across various jurisdictions.

A Bold Step for the Future of Broadcasting in Africa

If approved, this deal will create one of Africa’s largest media entities, combining Canal+’s global expertise with Multichoice’s extensive regional presence. Maxime Saada, CEO of Canal+, emphasized that the merger would position the company to compete with the largest players in the media sector, both within Africa and globally.

Calvo Mawela, CEO of Multichoice Group, echoed this sentiment, noting that the combination of resources and expertise would lead to better offerings for their subscribers. In a rapidly changing media environment, this could be a game-changing move for the industry.

Regulatory Approval and Future Impact

Though the deal is still under review, Canal+ and Multichoice are confident that the regulatory process will go smoothly. Once finalized, this takeover could redefine the future of broadcasting in South Africa and set a new standard for media companies in Africa. For now, customers can expect continued service, with potential improvements in the near future.

Follow Joburg ETC on Facebook, Twitter , TikTok and Instagram

For more News in Johannesburg, visit joburgetc.com