Johannesburg – Sipho Maseko and Sonja De Bruyn have joined a Broad-Based Black Economic Empowerment (BBBEE) consortium that will play a crucial role in facilitating Canal+’s acquisition of MultiChoice Group.
As part of the transaction, MultiChoice South Africa’s broadcasting licence operations will be restructured into a new independent entity, MultiChoice (Pty) Ltd (LicenceCo).
This move ensures regulatory compliance while paving the way for Canal+ to expand its video entertainment footprint across Africa.
Creation of LicenceCo
As part of this restructuring:
- LicenceCo will operate as an independent entity, holding the South African subscription broadcasting licence and contracting directly with MultiChoice’s South African subscribers.
- LicenceCo will be majority owned by Historically Disadvantaged Persons (HDPs), ensuring compliance with Broad-Based Black Economic Empowerment (BBBEE) policies. The ownership structure will include:
- Phuthuma Nathi, which will hold a 27% economic interest.
- Two black-owned and managed investment firms, Identity Partners Itai Consortium and Afrifund Consortium, bringing strategic industry expertise.
- A Workers’ Trust (ESOP), ensuring employee participation in ownership.
- MultiChoice Group will retain a 49% economic interest in LicenceCo, with a 20% voting share.
- MultiChoice Group will maintain its existing 75% direct interest in MultiChoice South Africa, excluding LicenceCo. Phuthuma Nathi will retain its 25% stake in MultiChoice South Africa.
Maxime Saada, CEO of Canal+, stated:“This transaction is an opportunity to build a global media powerhouse with a strong African footprint.
“The post-transaction structure is designed to fully comply with South African laws while reinforcing BBBEE.
“We welcome new HDP shareholders alongside Phuthuma Nathi and are excited about the broader employee ownership.”
Commercial agreements
LicenceCo will enter into commercial agreements with MultiChoice Group subsidiaries to ensure uninterrupted access to content, technology, subscriber management, and support services.
South African subscribers will experience no disruptions, with future enhancements expected as part of MultiChoice’s continued investment in technology and content supply.
Regulatory approvals & compliance
Canal+ and MultiChoice affirm that the restructuring aligns with all applicable laws, including foreign ownership restrictions under the Electronic Communications Act, 2005.
- The South African Competition Commission is currently reviewing the LicenceCo structure, following submissions made on 30 September 2024.
- The transaction also requires regulatory approval across multiple jurisdictions, including South Africa.
- The Independent Board of Phuthuma Nathi will assess the deal following its in-principle endorsement.
Commitment to BBBEE & Future Growth
Sipho Maseko and Sonja De Bruyn will play key roles within the BBBEE structure, reinforcing Canal+’s commitment to Broad-Based Black Economic Empowerment.
Calvo Mawela, CEO of MultiChoice Group said: “This transaction represents a significant milestone in a competitive and evolving industry.
“It enables us to scale up, enhance our subscriber offering, and deepen our commitment to transformation through broader BBBEE participation.”
With this restructuring, Canal+ and MultiChoice are moving closer to finalising a deal that will reshape Africa’s pay-TV landscape while maintaining regulatory compliance and supporting BBBEE transformation in South Africa.
*This article first appeared in our sister publication techfinancials.co.za
