The largest buyout of a local broadcaster is one step closer to completion, with MultiChoice now moving forward with the work of implementing the licence and empowerment structure for its takeover by would-be suitor Canal+.
This comes as SA’s Competition Tribunal gave the nod to the French media group’s takeover of MultiChoice.
Groupe Canal+ and MultiChoice said in a statement on Wednesday that the tribunal had approved the proposed transaction, subject to agreed conditions.
The conditions include a package of guaranteed public interest commitments proposed by the parties.
The package supports the participation of firms controlled by historically disadvantaged persons small, micro and medium enterprises in the audiovisual industry in SA.
The package will maintain funding for local SA general entertainment and sports content.
The transaction has faced regulatory hurdles and resistance from internal stakeholders because SA’s regulations — under Icasa and MultiChoice’s own memorandum of understanding — limit foreign voting rights to 20%.
In addition, it is unclear how the French group will tackle the issue of black ownership in the transaction.
A big part of the next phase is implementing the plan meant to ensure compliance.
In February, the two broadcasters said that MultiChoice Group would be restructured so that the current holder of the broadcasting licence in SA and the entity that contracts with SA subscribers, MultiChoice (Pty) Ltd — or LicenceCo — would be carved out and become an independent entity.
MultiChoice Group’s shareholding in LicenceCo will ultimately give it a 49% economic interest and 20% share of voting rights. The MultiChoice Group will also retain its existing 75% direct interest in MultiChoice SA, which will exclude LicenceCo.
Empowerment vehicle Phuthuma Nathi will similarly retain its existing 25% interest in MultiChoice SA.
The parties remain on track to complete the mandatory offer by Canal+ within the timeline and prior to the long-stop date of October 8, they said.
Business Day recently reported that MultiChoice was betting on the tie-up with Canal+ as the best chance of long-term survival and renewed relevance in a global streaming war.
The tie-up, hailed as the largest of its kind in SA’s broadcasting sector, promises scale, cost-savings and deeper financial muscle — critical ammunition in a market architecture shaped by entertainment giants such as Netflix.
After more than a year of boardroom chess, regulatory scrutiny and shareholder wrangling, the Competition Commission in May recommended conditional Competition Tribunal approval of the deal, bringing the pair closer to completing a landmark alliance.
Deputy commissioner Hardin Ratshisusu said: “The commitments in excess of R30bn required of the merged entity will ensure the merger has a significant positive impact in SA. In particular, the committed expenditure on local content will create vast opportunities for content creators.”
Canal+, which has amassed just more than a 45% stake in MultiChoice since February 2024, initially pitched R105 a share, later sweetened to R125 to scoop up the remaining equity and cement control.
“The approval by SA’s Competition Tribunal marks the final stage in the SA competition process and clears the way for us to conclude the transaction in line with our previously communicated timeline,” said Canal+ CEO Maxime Saada.
“It is a hugely positive step forward in our journey to bring together two iconic media and entertainment companies and create a true champion for Africa.”
MultiChoice CEO Calvo Mawela said the approval marked a significant milestone and was a major step forward for both companies.
“We look forward to executing the remaining processes required to complete the transaction and to start building something extraordinary: a global media and entertainment company with Africa at its heart,” said Mawela.
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