Canal+ Agrees To 3-Year Retrenchment Freeze at MultiChoice

Canal+ has agreed to a moratorium on retrenchments for three years at MultiChoice Group following the merger implementation date.

Sipho Maseko and Sonja De Bruyn have joined a Broad-Based Black Economic Empowerment (BBBEE) consortium played 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.

Canal+ has committed that the majority of LicenceCo’s shareholders will be Historically Disadvantaged Persons (HDPs) and workers.

The agreement also includes continued corporate social responsibility (CSR) initiatives, such as skills development in the audiovisual industry and sports development.

Canal+ has further assured that MultiChoice Group (MCG) will remain headquartered in South Africa, promote exports, and pursue a secondary inward listing on the JSE.

Key Commitments:

• No retrenchments for three years post-merger.

• Majority HDP and worker ownership in LicenceCo.

• R26 billion in public interest commitments, including local content procurement and supplier development.

• Support for SMMEs and HDP suppliers in the audiovisual sector.

• Continued investment in South African news content with a focus on diversity.

Regulatory Approval & Market Impact

The Competition Commission has recommended the merger’s approval, stating:

“In large mergers, the Commission is required to assess and ultimately make a recommendation to the Tribunal. The Commission is satisfied that the conditions attached to this merger sufficiently address the concerns raised during the investigation.” – Deputy Commissioner Hardin Ratshisusu

The Competition Tribunal will now make the final determination.

About the Merger Parties

• Canal+: A global media giant involved in content production, advertising, and broadcasting.

• MultiChoice Group (MCG): A leading African pay-TV operator, controlling brands like DStv, Showmax, and SuperSport.

This merger aims to strengthen South Africa’s audiovisual sector while safeguarding jobs and promoting economic inclusion.

By Gugu Lourie 2025-02-04

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.”