MultiChoice has initiated a restructuring process in anticipation of its $3 billion acquisition by Canal+. The company has secured the necessary approvals to ensure that the new entity incorporates empowerment shareholders.
This acquisition amounts to approximately R52.2 billion, based on the current exchange rate of R17.36. In July, the Competition Tribunal conditionally approved the merger between the South African video entertainment firm and the French media giant.
As part of the conditions set by competition authorities, both Canal+ and MultiChoice have committed R30 billion to maintain MultiChoice’s headquarters in South Africa, continue funding for local content and live sports, and support the country’s creative sector.
With the new structure in place, MultiChoice announced that it can now proceed with the steps required for this reorganisation. The restructuring is aimed at facilitating Canal+’s mandatory offer for MultiChoice, which is part of the conditions imposed by the South African Competition Tribunal.
Under the new arrangement, a separate entity called LicenceCo will be formed from MultiChoice, which will hold the South African broadcasting licence and contracts with local subscribers. The remaining video entertainment assets will remain within the MultiChoice Group.
MultiChoice has faced financial pressures, including a decline of 2.8 million active linear subscribers over the past two years and a loss of R10.2 billion in revenue due to currency depreciation against the US dollar.
In its 2025 annual report, MultiChoice highlighted that partnering with a global player like Canal+, which has a proven commitment to economic development in Africa, would enhance its sustainability and growth prospects across the continent.
The empowerment stake in LicenceCo will be partly held through Phuthuma Nathi, which will ultimately own a 27% economic interest. Established in 2006, Phuthuma Nathi was created to provide black South Africans the opportunity to own an indirect stake in MultiChoice. The entity has paid out over R13 billion in dividends to its 80,000 black shareholders, which include a diverse range of professionals and small businesses.
Phuthuma Nathi will collaborate with two established black-owned companies: Identity Partners Itai Consortium and Afrifund Consortium Investments. Identity Partners, founded in 2008, focuses on ensuring that black women participate at all levels of ownership and leadership. Afrifund Investments, led by former Telkom CEO Sipho Maseko, targets high-growth potential companies across various sectors.
MultiChoice Group’s shareholding in LicenceCo will ultimately grant it a 49% economic interest and 20% of the voting rights, solidifying its position in the newly structured entity.