Canal+, the French media conglomerate, has announced a significant development regarding its planned acquisition of South Africa’s leading pay-TV broadcaster, MultiChoice. The company has extended the deadline for this acquisition by an additional six months, pushing the anticipated completion date to October 8, 2025. This extension is primarily due to the ongoing need for regulatory approvals, which are still pending.
The delay stems from the stringent regulations outlined in South Africa’s Electronic Communications Act (ECA), which imposes strict limitations on foreign ownership within the broadcasting sector. Specifically, the ECA restricts foreign entities from holding more than 20% ownership in local broadcasting licenses. This regulatory framework presents a considerable challenge for Canal+, which aims to integrate MultiChoice into its expanding portfolio across the African continent.
In light of these regulatory hurdles, Canal+ and MultiChoice have devised a strategic restructuring plan to navigate the complexities of South African law. Central to this plan is the establishment of a new entity named ‘LicenceCo,’ which will be responsible for holding the broadcasting license. This entity is designed to comply with the ECA by ensuring that majority ownership is held by historically disadvantaged South Africans. The ownership structure will include various stakeholders, such as Phuthuma Nathi, Identity Partners Itai Consortium, Afrifund Consortium, and a Workers’ Trust, all of whom are committed to promoting inclusivity in the broadcasting sector.
Under this proposed arrangement, MultiChoice Group will retain a 49% economic interest in LicenceCo, along with 20% voting rights. This structure is intended to align with South Africa’s Broad-Based Black Economic Empowerment (BBBEE) credentials, which aim to address historical inequalities and promote economic participation among previously disadvantaged groups.
Despite the delays in the acquisition process, MultiChoice continues to operate effectively within its core markets. The company boasts a robust subscriber base across Africa, providing services such as DStv and GOtv. In response to the evolving landscape of media consumption, MultiChoice has been proactive in investing in digital platforms, including its streaming service Showmax, to meet the changing preferences of viewers. These initiatives are part of a broader strategy to strengthen its market position and attract a wider audience.
As the new deadline approaches, the focus shifts to the regulatory bodies responsible for granting the necessary approvals for the acquisition. The proposed restructuring through LicenceCo represents a strategic effort to align with South African laws, but the acceptance of this plan by regulators remains uncertain. The outcome of this process will have significant implications for Canal+’s expansion strategy in Africa and the future operations of MultiChoice, making it a critical development to watch in the coming months.
