The Independent Communications Authority of South Africa (Icasa) has approved the transfer of control of Orbicom’s electronic communications and radio frequency spectrum licences to Canal+.
Orbicom is MultiChoice’s signal distributor, and the approval is an essential step in progressing Canal+’s takeover of the company.
Orbicom submitted the applications to transfer control of its electronic communications service (I-ECS), individual electronic communications network services (I-ECNS), and Radio Frequency Spectrum licences in November 2024.
Icasa subsequently published its application, inviting stakeholders to submit their comments, in March 2025.
The I-ECNS licence authorises holders to roll out and operate electronic communications networks on a provincial or national scale.
In contrast, the I-ECS licence lets holders provide services to customers using their own or somebody else’s network infrastructure.
The Radio Frequency Spectrum licence enables an organisation to use a specific radio frequency band within a defined geographic area.
Icasa revealed that it had approved the transfer via a notice in the Government Gazette, published on Thursday, 18 September 2025. It granted the approval on 28 August 2025.
The regulator said it evaluated the licence control transfer application on the following criteria:
• Promotion of competition in the ICT sector;
• Interests of consumers; and,
• Equity ownership by Historically Disadvantaged Persons (HDPs).
Interested parties had 14 working days to submit their written representations, with the submission date ending on Monday, 7 April.
The transfer of control of Orbicom’s licences to Canal+ forms part of its acquisition of MultiChoice.
The French media giant had gradually brought up Multichoice shares in the open market since October 2020 and hit the mandatory offer threshold of 35% ownership in early 2024.
Canal+ offered MultiChoice R125 per share after some back-and-forth with MultiChoice and a reprimand from the Takeover Regulation Panel (TRP).
The offer valued MultiChoice at over R55 billion. The deal will cost Canal+ R30 billion in cash, and it has continued acquiring MultiChoice shares while the offer is under consideration until May 2024.
The RTP’s latest report on Canal+’s shareholding in MultiChoice was published in May 2024, revealing that Canal+’s ownership had climbed to 45.2%.
Although Canal+ was legally mandated to offer to acquire the DStv owner, the deal was subject to various regulatory hurdles — some of which have been cleared.
These hurdles include securing approvals from bodies like the Financial Surveillance Department, the Johannesburg Stock Exchange, the TRP, and Icasa.
ICT policy legal expert Lisa Thornton previously told the media that the deal’s success will depend on its structure.
MultiChoice and Canal+ had to find a way to limit the latter’s voting rights to 20% — a requirement for broadcasting licences under the Electronic Communications Act.
The deal also had to meet Broad-based Black Economic Empowerment (BBBEE) rules set out by Icasa. The rules stipulate that licencees must be 30% owned by historically disadvantaged groups.
To achieve this, MultiChoice South Africa will be carved out as an independent entity referred to as LicenceCo. It will hold the company’s South African operating licences.
LicenceCo will also contract with MultiChoice’s subscribers in South Africa, and the remainder of the group’s video entertainment assets will remain with the MultiChoice Group.
The MultiChoice Group’s shareholding in LicenceCo will give it a 49% economic interest and a 20% share of voting rights.
“MultiChoice Group will retain its existing 75% direct interest in MultiChoice South Africa, excluding LicenceCo. Phuthuma Nathi will similarly retain its existing 25% interest in MultiChoice South Africa,” the companies said.
“LicenceCo will enter into various commercial agreements with MultiChoice Group subsidiaries in relation to the services currently provided to LicenceCo by other MultiChoice Group entities.”
It added that these relate to providing content, technology, subscriber management and support, among other functions.
