MultiChoice Group has announced a reorganization ahead of the sale to French Canal+, enabled by approval from the South African Competition Tribunal.
MultiChoice Group Reorganization Plan
MultiChoice Group has announced a reorganization in line with South African laws prohibiting foreign entities from holding more than 20% of voting rights in local broadcasters. As part of the new plan, MultiChoice will create a new entity, LicenceCo, to manage the broadcasting license.
New Shareholders and Rights
In the new structure, MultiChoice will seek new investors. The new shareholders will have rights to subscription, repurchase, and other rights similar to those of existing investors. MultiChoice plans to hold 20% voting rights in LicenceCo's ordinary shares and a 49% economic interest.
Competition Commission and Compliance with Local Laws
The South African Competition Commission approved the deal with several conditions, including a $1.4 billion commitment to support local content and skills development. MultiChoice confirmed that the new structure complies with local laws, including restrictions on foreign ownership.
The reorganization of MultiChoice Group is aimed at ensuring compliance with local legislation while providing new opportunities for shareholders, which is crucial for the company's effective functioning in the future.
