Business
MultiChoice R55 Billion Takeover: Deadline Extended as Regulatory Hurdles Persist
The R55 billion takeover of MultiChoice by French media giant Canal+ has hit a regulatory roadblock, forcing both companies to extend their long stop date from 8 April 2025 to 8 October 2025.
The long stop date is the final deadline by which all conditions for the deal must be met. However, merger control clearance from South African competition authorities is still pending, prompting the extension.
Canal+ Reaffirms Commitment to the Deal
Despite the delay, Canal+ CEO Maxime Saada has reassured stakeholders that the company remains fully committed to finalizing the transaction.
“The timing of this transaction is critical, and we will continue working tirelessly to ensure the finalisation of the transaction within this timeframe to ensure it retains its intended value and impact for all stakeholders,” said Saada.
Canal+ has already acquired a 45% stake in MultiChoice and is offering R125 per share to buy the remaining shares.
Regulatory Hurdles: Key Challenges for the Takeover
For the deal to proceed, it must navigate a complex regulatory landscape, including:
- Competition Commission & Tribunal Approval – To ensure the deal does not create monopolistic market conditions.
- Independent Communications Authority of South Africa (Icasa) – Due to restrictions under the Electronic Communications Act (ECA), which limits foreign ownership of broadcasting licences to 20%.
- Financial Surveillance Department & Takeover Regulation Panel – To oversee financial compliance.
- Johannesburg Stock Exchange (JSE) – For market transparency and investor protection.
Proposed Workaround for Foreign Ownership Limits
To address ECA restrictions, MultiChoice and Canal+ plan to create a separate entity, “LicenceCo,” which will hold the broadcast licence and subscriber base.
- LicenceCo will be majority-owned by BEE shareholders.
- MultiChoice/Canal+ will retain 49% ownership but with only 20% voting rights.
While this structure seeks to bypass foreign ownership restrictions, it still requires approval from South African regulators.
What This Means for MultiChoice Subscribers
MultiChoice has assured its DStv subscribers that their viewing experience will not be affected by the ongoing regulatory process.
However, the extended timeline means that the future of South Africa’s biggest pay-TV provider remains uncertain as the companies work to finalize the acquisition by October 2025.
As the regulatory process unfolds, investors and industry experts will closely monitor whether the deal secures approval or faces additional roadblocks.
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