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There were multi-faceted matters that we had to achieve as part of the restructuring. Apart from navigating the different regulatory requirements in various jurisdictions, we had to manage the timing to ensure that the restructuring followed the timetable to rebase MultiChoice in the Netherlands.
Deepa Vallabh

MultiChoice Group, a South African entertainment provider of, amongst others, satellite TV channels across Africa, underwent an unprecedented restructuring programme in 2018 and 2019. This process involved relocating the holding company from Mauritius to the Netherlands. This was an important pre-step to achieve the unbundling of MultiChoice Group from its parent company Naspers through a separate listing on the Johannesburg Stock Exchange (JSE). Deepa Vallabh, a CMS partner based in Johannesburg, advised MultiChoice on its restructuring in 42 jurisdictions across Africa.

The advisory team performed due diligence on MultiChoice operations, addressing the different regulatory frameworks and practical aspects. The varying operating models of MultiChoice in each country, including local entities, franchises and agency models, increased the complexity of the matter. The entire engagement took some 18 months and was completed in August 2019. 

“There were multi-faceted matters that we had to achieve as part of the restructuring,” said Deepa Vallabh. “Apart from navigating the different regulatory requirements in various jurisdictions, we had to manage the timing to ensure that the restructuring followed the timetable to rebase MultiChoice in the Netherlands. It was not easy but with the support of the MultiChoice internal team we managed to do it.” 

This unwinding exercise and listing on the JSE resulted in MultiChoice improving its market position and value in the South African market. It also helps reinforce MultiChoice’s commitment to Broad-Based Black Economic Empowerment (B-BBEE) and socio-economic transformation, according to a Naspers announcement.