4th Aug 2025 11:12
(Alliance News) - MultiChoice Group Ltd on Monday said it has formally entered into agreements to reorganise some South African operations, before Paris-based Canal+ SA takes over the Johannesburg-based entertainment company.
The new structure, first announced early in February, ensures that the MultiChoice acquisition complies with foreign control regulations and maintains MultiChoice's broad-based black economic empowerment credentials.
MultiChoice's South African operations are held through MultiChoice South Africa Holdings Pty Ltd.
MultiChoice Group will restructure so that the current holder of the broadcasting licence in South Africa and the entity which contracts with South African subscribers, MultiChoice (Pty) Ltd or Licence Co, is carved out of the MultiChoice Group and would become an independent entity.
The remainder of MultiChoice's video entertainment assets will remain part of the MultiChoice Group.
Licence Co will continue to hold the subscription broadcasting licence in South Africa, and it will continue to contract with MultiChoice Group's South African subscribers.
On Monday, MultiChoice said it had on Friday last week entered into a number of agreements, related to its reorganisation.
As part of these agreements, MultiChoice will own 49% economic interest in Licence Co's shares, and control 20% of voting rights.
Phuthuma Nathi Investments Ltd will hold class A shares in Licence Co, representing 17.2% economic interest and 39% voting rights. Phuthuma Nathi also will own class B shares, amounting to 9.8% economic interest in Licence Co.
13th Ave Investments Pty Ltd will own 1.3% class A shares economic interest in Licence Co, with 16.23% voting rights. 13th Avenue will hold 8.2% class B shares economic interest.
Identity Partners Itai Consortium Pty Ltd will control 1.3% class A shares economic interest, with 16.23% voting rights. Identity Partners will also own 8.2% class B shares.
MultiChoice (Pty) Ltd Workers Trust will hold 5% class C shares economic interest, with 8.54% voting rights.
MultiChoice said all remaining approvals for the mandatory offer have been obtained.
Before the reorganisation, Phuthuma Nathi held an indirect shareholding in Orbicom via Phuthuma Nathi's 25% shareholding in MultiChoice South Africa Holdings. The reorganisation contemplates Phuthuma Nathi subscribing for 20% shares in Orbicom at nominal value, MultiChoice Group said.
Following this subscription, Phuthuma Nathi will increase its effective shareholding in Orbicom to 40% from 25%. Orbicom is the licensed signal distributor and holder of electronic communications and radio frequency spectrum licences.
MultiChoice South Africa Holdings will declare a further extraordinary dividend to its shareholders of ZAR1.38 billion.
Shares in MultiChoice were up 0.5% to ZAR120.97 on Monday late morning in Johannesburg. Canal+ shares were 1.2% lower at 247.00 pence in London.
By Artwell Dlamini, Alliance News senior reporter South Africa
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