MultiChoice splits for Canal+ takeover

DStv’s parent company, MultiChoice Group, will restructure the company to comply with the Electronic Communications Act (ECA), enabling the French media giant, Canal+, to acquire it.

- Tshehla Cornelius Koteli

MultiChoice's primary business is providing video entertainment through multiple platforms, including DStv, GOtv and ShowMax.

Canal+ already owns 45% of MultiChoice's shares and with this deal, it intends to buy the remaining shares for R125 per share, valuing the group at more than R50 billion.

The ECA limits foreign ownership and control in commercial broadcasting licensees to 20%, preventing foreign entities from exercising control.

MultiChoice announced to shareholders on Monday that the first steps of restructuring the company will begin.