French media giant Canal+ and South African-based video entertainment firm MultiChoice have proposed a restructuring plan following Canal+'s planned acquisition of MultiChoice. The companies aim to ensure compliance with foreign ownership limitations and maintain MultiChoice's broad-based black economic empowerment (BBBEE) credentials. Key aspects of the restructuring include carving out MultiChoice's broadcasting license holder, LicenseCo, into an independent entity majority owned by historically disadvantaged persons.
MultiChoice Group and its suitor Canal+ have proposed to restructure the South African-based video entertainment firm after the anticipated R30 billion acquisition deal with the French media giant goes through.
Today, a joint statement informed shareholders that discussions regarding the intended post-transaction structure of MultiChoice have been concluded. The remainder of the group’s video entertainment assets will remain part of the MultiChoice Group, they add. MultiChoice Group will also retain its existing 75% direct interest in MultiChoice South Africa, which will exclude LicenceCo.LicenceCo will enter into various commercial agreements with MultiChoice Group subsidiaries in relation to the services currently provided to LicenceCo by other MultiChoice Group entities. These relate to, among others, the provision of content, technology, subscriber management, and support and other functions.
According to the firms, the LicenceCo structure was submitted to the South African Competition Commission, as part of the filings made on 30 September 2024, and is being considered by the commission.
ACQUISITION MULTICHOICE CANAL+ SOUTH AFRICA BROADCASTING FOREIGN OWNERSHIP BBBEE
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