MultiChoice Secures New Investors Amid Canal+ Takeover Restructuring
MultiChoice Group, the prominent South African media and entertainment company, is restructuring its ownership ahead of its acquisition by French media conglomerate, Group Canal+. This strategic move, detailed in a recent announcement, addresses South African regulatory requirements and ensures compliance with local ownership restrictions. The reorganisation follows the South African Competition Tribunal’s approval of Canal+’s $2 billion takeover of MultiChoice.
South African Ownership Compliance Driving Changes
The core reason behind the reshuffling is to adhere to South African laws that limit foreign entities’ voting rights in local broadcasting licenses to no more than 20%. To achieve this, MultiChoice is bringing in a new cohort of investors. Details of the new shareholder configuration have emerged, including agreements between MultiChoice, LicenceCo (a dedicated entity for holding the group’s broadcasting license), Phuthuma Nathi Investments, 13th Ave Investments, Identity Partners, Itai Consortium (IPIC), and the trustees of the MultiChoice Workers Trust. The new investors will receive rights related to subscription and repurchase, similar to those granted to existing investors, thus ensuring compliance with South African laws governing media ownership.
In conclusion, MultiChoice’s decision to introduce new investors is a direct response to regulatory hurdles and is a strategic approach towards enabling the Canal+ acquisition to proceed, thus strengthening the media landscape in South Africa and the continent.
Keywords
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