MultiChoice’s plans to reorganise its operations in preparation for its deal with French media giant Canal+ have become unconditional.
According to Multichoice, the implementation of the various steps of the process will now start.
“As previously advised, the reorganisation is to be undertaken in order to enable the implementation of Canal+’s Mandatory Offer for Multichoice, and forms part of the conditions imposed by the South African Competition Tribunal when approving the Mandatory Offer,” it said.
The mandatory offer is Canal+’s move to acquire all the issued ordinary shares of MCG not already owned by the group, excluding treasury shares, from MCG shareholders for a consideration of R125.00 per share, payable in cash.
The South African Competition Tribunal approved the proposed transaction, subject to agreed conditions, in July 2025.
As the parties previously disclosed, the agreed conditions include a robust package of guaranteed public interest commitments.
The package supports the participation of firms controlled by Historically Disadvantaged Persons (HDPs) and Small, Micro and Medium Enterprises in the audio-visual industry in South Africa.
This package will also maintain funding for local South African general entertainment and sports content.
The reorganisation process will see Multichoice adopt a takeover structure, which will ensure it meets the requirements of all applicable laws, such as restrictions on foreign ownership and control of South African broadcasting licences.
The structure includes Multichoice (Pty) Ltd (previously referred to as ‘LicenceCo’), which contracts with South African subscribers, being carved out of the Multichoice Group and becoming independent.
The Multichoice/Canal+ group would own 49% of this company, with 20% voting rights, aligning with regulatory restrictions on foreign control of licences.
The rest of the control of LicenceCo will be held by various groups, including Phuthuma Nathi Investments Limited, 13th Ave Investments Proprietary Limited, Identity Partners Itai Consortium Proprietary Limited (IPIC) and the Multichoice Workers Trust.
These groups entered into several transaction agreements on 1 August to achieve this.
Under the agreements, the groups will subscribe to various classes of shares in LicenceCo, giving different economic and voting interests.
The group said that an updated timetable for the offer will be published once the implementation of the reorganisation has been concluded.
