Two confirmed participants in the approximately R30 billion deal between MultiChoice and the French media group Groupe Canal+ are former Telkom CEO Sipho Maseko and BEE deal veteran Sonja van Bruyn.
In the event that the Canal+ acquisition is approved, MultiChoice Group said yesterday that it will restructure to adhere to laws governing local ownership and foreign control of South African broadcasters.
One aspect of this is establishing MultiChoice (Pty) Ltd as a separate legal company. It will continue to enter into contracts with MultiChoice’s viewers in South Africa and maintain the necessary local operating licenses.
After purchasing more than 35% of MultiChoice’s shares on the open market, Canal+ made an offer to buy the firm, which triggered a need in South African law that it make a necessary buy-out offer.
Since October 2020, the French media behemoth has been gradually acquiring MultiChoice stock, reaching the milestone at the start of 2024.
Following considerable back and forth between the two businesses and a censure from the Takeover Regulation Panel, Canal+ made an offer of R125 per share, valuing MultiChoice at more than R55 billion.
While its offer was being examined, Canal+ kept purchasing MultiChoice shares; as of May 2024, the Takeover Regulation Panel reported that Canal+ had 45.2% of the company’s shares.
Despite being required by law to submit an offer to purchase MultiChoice, Canal+ still needs to clear a number of regulatory obstacles.
The firms must obtain clearance from the JSE, the Financial Surveillance Department, the Competition Tribunal, the Takeover Regulation Panel, and the Independent Communications Authority of South Africa (Icasa) in order for the transaction to move forward.
Lisa Thornton, a legal expert in ICT policy, previously told MyBroadband that the framework of the agreement will determine its success.
The businesses would specifically have to figure out how to restrict Canal+’s MultiChoice voting rights to 20%, which is a requirement for broadcasting licenses under the Electronic Communications Act.
The deal must also comply with the Broad-based Black Economic Empowerment (BBBEE) regulations established by industry watchdog Icasa, which stipulate that licensees must have at least 30% of their shares owned by historically underrepresented people.
MultiChoice (Pty) Ltd will be separated from the group structure and retain its South African operating licenses in order to satisfy these two significant regulatory concerns. This organization is referred to by MultiChoice as LicenceCo.
The MultiChoice Group will continue to own the company’s remaining video entertainment assets.
The following individuals from historically underrepresented groups will own the majority of LicenceCo:
MultiChoice’s BEE share plan, Phuthuma Nathi, will eventually own a 27% economic stake.
Identity Partners Itai Consortium and Afrifund Consortium, two reputable black-owned and managed businesses, will each own shares.
A Workers’ Trust-based Employee Stock Ownership Plan
“Identity Partners and Afrifund bring highly experienced leaders with great commercial and industry knowledge,” MultiChoice and Canal+ said.
Be the first to reply