The French media conglomerate Canal+ has emerged from a period of quiet maneuvering to make significant strides towards the full acquisition of South Africa’s broadcasting giant, MultiChoice, in a landmark R30 billion transaction.
Canal+ has been strategically increasing its stake in MultiChoice over time, and by May 2024, it had successfully accumulated approximately 45.2% of MultiChoice’s shares. The media giant is now on the cusp of acquiring the remaining shares to finalize the takeover.
The magnitude of this acquisition has not escaped the attention of South African regulatory bodies. Both Canal+ and MultiChoice have taken the requisite steps to file with the Competition Commission, initiating a review process that will ultimately be escalated to the Competition Tribunal for final approval. Additionally, they are engaging with the Independent Communications Authority of South Africa (ICASA) to ensure full regulatory compliance.
A significant legal challenge presents itself in the form of South African broadcasting regulations, which impose a 20% cap on voting rights for foreign entities in local broadcasters. Canal+ and MultiChoice are actively seeking solutions to navigate this restriction while adhering to legal requirements.
A key consideration in the structuring of the deal is the preservation of MultiChoice’s status concerning broad-based black economic empowerment (BBBEE) in South Africa.
While the finer details of the deal’s structure remain under wraps, the companies have earmarked April 2025 as the deadline to finalize the acquisition. As they progress towards this deadline, further information is expected to be disclosed as they address the intricacies of the final stages of the deal.
