Randburg – Multichoice Group, the parent company of DStv, has announced a major restructuring to comply with South Africa’s Electronic Communications Act, paving the way for French media company Canal+ to acquire full ownership.
The group, which operates DStv, GOtv, and ShowMax, is already 45 percent owned by Canal+, which now plans to purchase the remaining shares at R125 each, valuing Multichoice at over R50 billion.
The move is necessary because the Electronic Communications Act restricts foreign ownership and control of commercial broadcasting companies to 20 percent. Foreign investors cannot hold more than 20 percent of voting shares, financial interests, or director positions in such licensees.
Multichoice notified shareholders on Monday that the initial steps of the reorganisation have begun. The restructuring will allow Canal+ to implement a mandatory offer for the remaining shares, following conditions set by the South African Competition Tribunal.
Under the plan, Multichoice will separate its South African TV broadcasting and subscription business into a new company called LicenceCo. This ensures compliance with the law while maintaining the group’s licences and protecting other operations under Multichoice. Regulatory authorities, including the Prudential Authority, and key funders have already approved the move.
DStv has been facing declining subscriber numbers, losing 2.8 million active linear subscribers over the past two financial years. The company attributes the decline to challenging economic conditions across sub-Saharan Africa, the rise of piracy, growth in streaming services, and the expansion of social media. Currency depreciation has also impacted revenue, contributing to a R10.2 billion loss in topline value.
Multichoice said it will release an updated timetable for Canal+’s mandatory offer once the reorganisation is completed.
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