LicenceCo to Facilitate MultiChoice SA Restructuring
MultiChoice, the prominent South African pay-TV provider, is undergoing a significant restructuring to comply with local regulations and pave the way for its acquisition by Canal+ of France. This move comes swiftly after the Competition Tribunal granted the deal approval, signaling a pivotal moment for the company and the South African broadcasting landscape.
LicenceCo: A South African Solution for Foreign Investment
The restructuring involves the creation of a special local entity, known as LicenceCo. This strategy addresses South African law, which currently limits foreign ownership in licensed broadcasters to a maximum of 20%. LicenceCo’s primary function is to ensure that effective control of MultiChoice’s South African operations remains within local hands, at least nominally. While foreign ownership could potentially increase to 49% in the future, the timeline for any regulatory changes remains uncertain. This approach allows MultiChoice to navigate the existing regulatory framework while accommodating the proposed acquisition by Canal+. The pay-TV operations will be carved out and placed within the newly formed LicenceCo structure.
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