JOHANNESBURG - Canal+ SA, a French media company, and MultiChoice (JO:MCGJ) Group Limited, a South African entertainment firm, have issued a joint announcement detailing the progress of Canal+’s mandatory offer to acquire all issued ordinary shares of MultiChoice not already owned by Canal+. The announcement was made today via the Johannesburg Stock Exchange’s news service, where MultiChoice is listed.
The proposed transaction, initially announced on April 8, 2024, offers ZAR125.00 per share in cash to MultiChoice shareholders. The parties have now outlined their post-transaction structure, designed to comply with South African foreign ownership regulations and maintain MultiChoice’s Broad-Based Black Economic Empowerment (BBBEE) credentials.
The new structure will see the MultiChoice Group reorganized. The broadcasting license holder and entity contracting with South African subscribers, MultiChoice (Pty) Ltd, will be carved out as an independent entity named LicenceCo, which will be majority-owned by Historically Disadvantaged Persons (HDPs). These include Phuthuma Nathi, Identity Partners Itai Consortium, Afrifund Consortium, and a Workers’ Trust established to benefit employees.
Phuthuma Nathi will hold a 27% economic interest in LicenceCo, with MultiChoice Group retaining a 49% economic interest and 20% voting rights. LicenceCo will enter into commercial agreements with MultiChoice Group subsidiaries for content, technology, and support services. This restructuring is expected to provide continuity for subscribers without service disruption, with future benefits from additional content and investments.
The transaction is still under regulatory review in South Africa and other jurisdictions, pending approval from relevant authorities, including the South African Competition Commission and the Independent (LON:IOG) Board of Phuthuma Nathi.
Maxime Saada, CEO of Canal+, emphasized the transaction’s alignment with South African laws and the focus on Broad-Based Black Economic Empowerment. Calvo Mawela, CEO of MultiChoice Group, expressed enthusiasm for the partnership’s potential to increase scale and enhance offerings in a competitive industry.
The announcement reflects a significant step forward in the transaction process, with both companies expressing commitment to the deal’s successful completion. The information is based on a press release statement.
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