{"id":29561,"date":"2025-09-17T16:16:25","date_gmt":"2025-09-17T14:16:25","guid":{"rendered":"https:\/\/www.gauteng.net\/whats-on-g\/?p=29561"},"modified":"2026-03-12T09:50:20","modified_gmt":"2026-03-12T07:50:20","slug":"multichoice-restructures-dstv-canal-deal","status":"publish","type":"post","link":"https:\/\/www.gauteng.net\/whats-on-g\/multichoice-restructures-dstv-canal-deal\/","title":{"rendered":"MultiChoice Restructures DStv to Clear Path for Canal+ Deal"},"content":{"rendered":"\n<p>MultiChoice restructures DStv in one of the most significant shifts in South Africa\u2019s media landscape. The move clears the path for the Multichoice Canal+ deal, a transaction that could reshape broadcasting and streaming in Africa.<\/p>\n\n\n\n<p>This reorganisation comes after French media giant Canal+ triggered a mandatory takeover offer, valuing MultiChoice at around <strong>R55 billion<\/strong>. The decision was not only strategic but also necessary to comply with South African legislation.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-why-multichoice-restructures-dstv\">Why MultiChoice Restructures DStv<\/h2>\n\n\n\n<p>The restructuring ensures that MultiChoice meets the requirements of the Electronic Communications Act (ECA). This law limits foreign entities to a maximum of 20% voting rights in broadcasting licence holders.<\/p>\n\n\n\n<p>Additionally, the Act requires at least 30% ownership by Historically Disadvantaged Persons (HDPs). Without these changes, the Multichoice Canal+ deal would not have received regulatory approval.<\/p>\n\n\n\n<p>Don\u2019t miss our coverage on the latest additions \u2014 <a href=\"https:\/\/www.gauteng.net\/whats-on-g\/three-new-channels-added-to-dstv\/\" target=\"_blank\" rel=\"noreferrer noopener\">Exclusive! Three New Channels Added to DStv\u2019s R300 Package<\/a>.<\/p>\n\n\n\n<div id=\"gaute-2745244118\" class=\"gaute-inbetween-content gaute-entity-placement\" style=\"margin-top: 30px;margin-bottom: 30px;margin-left: auto;margin-right: auto;text-align: center;\"><div class=\"gaute-adlabel\">Advertisement<\/div><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1852772760112594\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-1852772760112594\" \ndata-ad-slot=\"1819787043\" \ndata-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><h2 class=\"wp-block-heading\" id=\"h-what-triggered-the-canal-takeover\">What Triggered the Canal+ Takeover<\/h2>\n\n\n\n<p>Canal+ already owned more than <strong>45% of MultiChoice<\/strong> before the deal. When it exceeded the <strong>35% threshold<\/strong> under the South African Companies Act, it was compelled to make a full takeover offer.<\/p>\n\n\n\n<p>After months of negotiations with the MultiChoice board, Canal+ made an offer of <strong>R125 per share<\/strong> for the remaining stock. This valued the group at <strong>R55 billion<\/strong>.<\/p>\n\n\n\n<p><a href=\"https:\/\/www.reuters.com\/world\/africa\/canal-gets-conditional-approval-multichoice-takeover-2025-07-23\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\">Reuters<\/a> confirmed that the Competition Tribunal granted conditional approval in July 2025.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-creation-of-licenceco-the-core-of-the-reorganisation\">Creation of LicenceCo: The Core of the Reorganisation<\/h2>\n\n\n\n<p>At the heart of the restructuring is a new company called <strong>LicenceCo<\/strong>. This entity will house MultiChoice\u2019s South African broadcasting licences and local subscriber contracts.<\/p>\n\n\n\n<p><a href=\"https:\/\/mybroadband.co.za\/news\/broadcasting\/611059-say-goodbye-to-multichoice-as-you-know-it.html\" target=\"_blank\" rel=\"noreferrer noopener\">The ownership structure<\/a> was designed to limit Canal+ control while increasing local ownership:<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table class=\"has-fixed-layout\"><thead><tr><th>Shareholder<\/th><th>Economic Interest<\/th><th>Voting Rights<\/th><\/tr><\/thead><tbody><tr><td>MultiChoice Group<\/td><td>49%<\/td><td>20%<\/td><\/tr><tr><td>Phuthuma Nathi<\/td><td>27%<\/td><td>39%<\/td><\/tr><tr><td>13th Avenue Investments<\/td><td>9.5%<\/td><td>16.23%<\/td><\/tr><tr><td>Identity Partners Itai Consortium (IPIC)<\/td><td>9.5%<\/td><td>16.23%<\/td><\/tr><tr><td>MultiChoice Workers Trust<\/td><td>5%<\/td><td>8.54%<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<div id=\"gaute-665995741\" class=\"gaute-inbetween-content gaute-entity-placement\" style=\"margin-top: 30px;margin-bottom: 30px;margin-left: auto;margin-right: auto;text-align: center;\"><div class=\"gaute-adlabel\">Advertisement<\/div><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1852772760112594\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-1852772760112594\" \ndata-ad-slot=\"1819787043\" \ndata-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><h2 class=\"wp-block-heading\" id=\"h-who-are-the-key-local-shareholders\">Who Are the Key Local Shareholders?<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Phuthuma Nathi<\/strong>: MultiChoice\u2019s broad-based black economic empowerment vehicle. It acquired shares via a <strong>R3.77 billion loan claim<\/strong>.<\/li>\n\n\n\n<li><strong>13th Avenue Investments<\/strong>: Linked to business leaders such as <strong>Sipho Maseko<\/strong>, former CEO of Telkom.<\/li>\n\n\n\n<li><strong>IPIC<\/strong>: Includes respected South African investors like Sonja de Bruyn and Ernest Kwinda.<\/li>\n\n\n\n<li><strong>Workers Trust<\/strong>: Beneficiaries are MultiChoice employees and key suppliers.<\/li>\n<\/ul>\n\n\n\n<p>Learn more about MultiChoice\u2019s digital strategy in <a href=\"https:\/\/www.gauteng.net\/whats-on-g\/big-plans-for-dstv-multichoice-embraces-streaming\/\" target=\"_blank\" rel=\"noreferrer noopener\">Big Plans for DStv: MultiChoice Embraces Streaming with Showmax and DStv Stream<\/a>.<\/p>\n\n\n\n<p>This diversified ownership structure ensures that <strong>LicenceCo remains majority South African-owned<\/strong>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-financial-impact-of-the-reorganisation\">Financial Impact of the Reorganisation<\/h2>\n\n\n\n<p>The restructuring comes with major financial implications:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>An <strong>extraordinary dividend of R1.375 billion<\/strong> will be paid, of which <strong>R343.75 million<\/strong> goes to Phuthuma Nathi.<\/li>\n\n\n\n<li>Phuthuma Nathi also increased its stake in signal distributor <strong>Orbicom from 25% to 40%<\/strong>.<\/li>\n\n\n\n<li>13th Avenue and IPIC paid <strong>R287 million combined<\/strong> for their equity.<\/li>\n<\/ul>\n\n\n\n<p><a href=\"https:\/\/businesstech.co.za\/news\/business\/833934\/dstv-owner-going-through-major-restructuring\/?utm_source=chatgpt.com\" target=\"_blank\" rel=\"noopener\">BusinessTech<\/a> reported that MultiChoice disposed of 26% of its economic interest in LicenceCo and 15% in Orbicom as part of this restructuring.<\/p>\n\n\n\n<div id=\"gaute-4207976486\" class=\"gaute-inbetween-content gaute-entity-placement\" style=\"margin-top: 30px;margin-bottom: 30px;margin-left: auto;margin-right: auto;text-align: center;\"><div class=\"gaute-adlabel\">Advertisement<\/div><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1852772760112594\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-1852772760112594\" \ndata-ad-slot=\"1819787043\" \ndata-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><h2 class=\"wp-block-heading\" id=\"h-regulatory-conditions-for-the-canal-deal\">Regulatory Conditions for the Canal+ Deal<\/h2>\n\n\n\n<p>The Competition Tribunal imposed strict public interest conditions on the Canal+ takeover. These include:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Maintaining <strong>jobs in South Africa<\/strong>.<\/li>\n\n\n\n<li>Ensuring <strong>local content production<\/strong> remains a priority.<\/li>\n\n\n\n<li>Protecting the <strong>plurality of media voices<\/strong>.<\/li>\n\n\n\n<li>Continued compliance with <strong>BBBEE requirements<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p>These conditions aim to safeguard South Africa\u2019s cultural and economic interests while enabling the global merger.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-the-broader-market-context-why-now\">The Broader Market Context: Why Now?<\/h2>\n\n\n\n<p>The restructuring takes place against a backdrop of subscriber losses and industry disruption.<\/p>\n\n\n\n<p>According to MultiChoice\u2019s 2025 financials:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>The group lost <strong>2.8 million active linear subscribers<\/strong> over two years.<\/li>\n\n\n\n<li>It absorbed a <strong>R10.2 billion hit<\/strong> from currency depreciation.<\/li>\n\n\n\n<li>Piracy, global streaming services, and social media eroded its market position.<\/li>\n<\/ul>\n\n\n\n<p>The deal with Canal+ is therefore not just regulatory compliance but also a strategic survival move.<\/p>\n\n\n\n<div id=\"gaute-1433720301\" class=\"gaute-inbetween-content gaute-entity-placement\" style=\"margin-top: 30px;margin-bottom: 30px;margin-left: auto;margin-right: auto;text-align: center;\"><div class=\"gaute-adlabel\">Advertisement<\/div><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1852772760112594\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-1852772760112594\" \ndata-ad-slot=\"1819787043\" \ndata-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><h2 class=\"wp-block-heading\" id=\"h-expert-opinions-on-the-multichoice-canal-deal\">Expert Opinions on the Multichoice Canal+ Deal<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Maxime Saada (CEO, Canal+):<\/strong> \u201cThis transaction is an opportunity to create a unique global media company with a strong presence across Africa. It will have the scale, expertise and creativity to compete and partner with the largest players within the media sector and beyond.\u201d<\/li>\n\n\n\n<li><strong>Calvo Mawela (CEO, MultiChoice):<\/strong> \u201cThe opportunity to combine our efforts to increase scale and bring our subscribers an even better offering is something that continues to excite us.\u201d<\/li>\n<\/ul>\n\n\n\n<p>Both leaders highlighted scale and competitiveness as the driving forces behind the deal.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-implications-for-viewers\">Implications for Viewers<\/h2>\n\n\n\n<p>MultiChoice reassured subscribers that there will be no disruption to services. Canal+ has committed to:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Investing in <strong>new content<\/strong>.<\/li>\n\n\n\n<li>Expanding <strong>technology infrastructure<\/strong>.<\/li>\n\n\n\n<li>Supporting <strong>Showmax and streaming growth<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p>For DStv users, the short-term impact may be minimal, but over time viewers could benefit from <strong>expanded content libraries<\/strong> and <strong>stronger digital platforms<\/strong>.<\/p>\n\n\n\n<div id=\"gaute-1489613093\" class=\"gaute-inbetween-content gaute-entity-placement\" style=\"margin-top: 30px;margin-bottom: 30px;margin-left: auto;margin-right: auto;text-align: center;\"><div class=\"gaute-adlabel\">Advertisement<\/div><script async src=\"\/\/pagead2.googlesyndication.com\/pagead\/js\/adsbygoogle.js?client=ca-pub-1852772760112594\" crossorigin=\"anonymous\"><\/script><ins class=\"adsbygoogle\" style=\"display:block;\" data-ad-client=\"ca-pub-1852772760112594\" \ndata-ad-slot=\"1819787043\" \ndata-ad-format=\"auto\" data-full-width-responsive=\"true\"><\/ins>\n<script> \n(adsbygoogle = window.adsbygoogle || []).push({}); \n<\/script>\n<\/div><h2 class=\"wp-block-heading\" id=\"h-risks-and-challenges-ahead\">Risks and Challenges Ahead<\/h2>\n\n\n\n<p>Despite the restructuring, challenges remain:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Managing the <strong>complex governance structure<\/strong> of LicenceCo.<\/li>\n\n\n\n<li>Balancing <strong>economic vs voting rights<\/strong> among shareholders.<\/li>\n\n\n\n<li>Sustaining profitability in a competitive streaming market.<\/li>\n\n\n\n<li>Addressing continued <strong>currency volatility<\/strong> and <strong>consumer affordability issues<\/strong>.<\/li>\n<\/ul>\n\n\n\n<p>Industry analysts caution that restructuring alone does not solve long-term sustainability challenges.<\/p>\n\n\n\n<p>ind out the reasons behind the delays in <a href=\"https:\/\/www.gauteng.net\/whats-on-g\/dstv-restructuring-dstvs-package-overhaul\/\" target=\"_blank\" rel=\"noreferrer noopener\">DStv Restructuring: Why DStv\u2019s Package Overhaul Took So Long<\/a>.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\" id=\"h-a-defining-moment-in-african-broadcasting\">A Defining Moment in African Broadcasting<\/h2>\n\n\n\n<p>The fact that MultiChoice restructures DStv shows the seriousness of the Multichoice Canal+ deal. By creating LicenceCo and bringing in local empowerment shareholders, MultiChoice has cleared the path for Canal+ while meeting South Africa\u2019s legislative demands.<\/p>\n\n\n\n<p>For South Africa, this is more than a corporate transaction. It is a balancing act between global capital and local empowerment, between market survival and cultural preservation.<\/p>\n\n\n\n<p>As the updated timetable for the mandatory offer is released, viewers, employees, and regulators alike will be watching closely. The outcome could define the next chapter of African broadcasting.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>MultiChoice restructures DStv by creating LicenceCo to comply with South African laws, clearing the path for the Canal+ deal worth R55 billion.<\/p>\n","protected":false},"author":11,"featured_media":29566,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"rank_math_focus_keyword":"","rank_math_title":"","rank_math_description":"MultiChoice restructures DStv by creating LicenceCo to comply with South African laws, clearing the path for the Canal+ deal worth R55 billion.","footnotes":""},"categories":[24],"tags":[1975,1794,9735,1229],"class_list":{"0":"post-29561","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-finance","8":"tag-dstv","9":"tag-entertainment","10":"tag-lifestyle","11":"tag-multichoice"},"_links":{"self":[{"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/posts\/29561","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/comments?post=29561"}],"version-history":[{"count":1,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/posts\/29561\/revisions"}],"predecessor-version":[{"id":29570,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/posts\/29561\/revisions\/29570"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/media\/29566"}],"wp:attachment":[{"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/media?parent=29561"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/categories?post=29561"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.gauteng.net\/whats-on-g\/wp-json\/wp\/v2\/tags?post=29561"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}