MultiChoice has initiated a major restructuring of its South African operations to comply with local ownership rules, reducing its stake in licence-holding subsidiary LicenceCo to 49% economic interest and 20% voting rights.
The move aligns with South Africa’s Electronic Communications Act, which caps foreign voting rights at 20% and mandates 30% ownership by historically disadvantaged individuals.
Transactions finalized August 1 involve four entities: Phuthuma Nathi, 13th Avenue Investments, Identity Partners Itai Consortium, and the MultiChoice Workers Trust.
Phuthuma Nathi, the company’s Black Economic Empowerment partner, secured its shares through a R3.77 billion (~$226 million) loan claim while increasing its indirect Orbicom stake to 40%.
Other investors paid R287 million (~$17.2 million) collectively for shares carrying limited initial rights.
Concurrently, MultiChoice and Phuthuma Nathi shareholders will receive an extraordinary R1.375 billion (~$82.5 million) dividend post-restructuring.
The Johannesburg Stock Exchange classified the changes as a Category 2 transaction, requiring no shareholder vote.
Meanwhile, in Ghana, MultiChoice faces an August 7 deadline from the National Communications Authority to reduce DStv subscription prices or risk license suspension.
This demand contrasts sharply with the company’s proactive compliance in South Africa, highlighting divergent regulatory pressures across its African markets.
The outcome in Ghana could significantly impact service continuity for subscribers amid ongoing disputes over pricing structures and market competition.
