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Canal+ to Carve, Spin out MultiChoice’s LicenceCo in Aggressive Takeover Bid  

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Canal+ S.A., a French media and telecommunications conglomerate based in Paris, will restructure MultiChoice Group and carve out its broadcasting licence and South African DStv subscribers into “Licence Co” as a new separate entity while the remainder contains its video assets as the MultiChoice Group.

Canal+ to Carve, Spin out MultiChoice's LicenceCo in Aggressive Takeover Bid  

This is in its push for aggressive takeover of MultiChoice through successfully and circumvent the country’s regulations preventing a majority-owned share in local media.

According https://teeveetee.blogspot.com, Canal+ is progressing with its aggressive buyout of R32 billion for MultiChoice although various regulatory hurdles are supposed to prevent foreign ownership of a large South African media company like MultiChoice.

Canal+’s plan for a “post-transaction structure” for MultiChoice is to carve out MultiChoice’s broadcasting licence in South Africa, overseen by the Independent Communications Authority of South Africa (Icasa) and MultiChoice South Africa’s DStv subscribers in South Africa into a new company called Licence Co.

Canal+’s Licence Co will be a new entity, while the remainder of MultiChoice’s video entertainment assets will then remain part of the MultiChoice Group.

The MultiChoice broadcast licence carve out is part of Canal+ plan to circumvent and get around South Africa’s broadcast and ownership regulations.

The dilemma Canal+ and MultiChoice have is that they can’t legally get around a foreign entity owning a South African broadcast licence, in this case for traditional pay-TV.

The plan is now for this “problem-part” preventing Canal+’s MultiChoice takeover from going through – MultiChoice South Africa and its South African broadcasting licence and South African set of DStv subscribers – to be siloed as Licence Co.

Licence Co. in South Africa will literally hold the pay-TV licence and manage the DStv subscribers, while MultiChoice Group will legally-technically no longer be a broadcaster but a video content supplier.

Like a family trust, Licence Co, although an “independent” company, will exist with the express aim to benefit the MultiChoice Group.

Also to note: MultiChoice Group, belonging to French owners and as the so-called “video content hub”, will now mean that Canal+ and MultiChoice’s French owners will now be paying to keep the South African public broadcaster’s SABC News, eMedia’s eNCA and Newzroom Africa’s as South African TV news channels on the air on DStv.

This is, in effect, a French private company paying for and in control of South African TV news, as well as news elsewhere in sub-Saharan Africa.

Canal+ and MultiChoice has to secure approvals for the mega-takeover deal from Icasa, the Takeover Regulation Panel, South Africa’s Competition Tribunal, shareholders, the Financial Surveillance Department and adhere to other requirements like black-economic empowerment (BEE) and with Canal+ not have voting rights of more than 20% as mandated by the Electronic Communications Act.

On paper Licence Co will be a new “independent company” but in real effect work in tandem with MultiChoice Group – as it exists currently containing MultiChoice’s operational structure, technology, staff and content assets.

Licence Co will become/remain the entity dealing with South African DStv subscribers.

Canal+ and MultiChoice plan to spin out Licence Co’s ownership as majority-owned by the current Phuthuma Nathi scheme (27%), as well as two black-owned companies – Identity Partners Itai Consortium with Sonja de Bruyn and Afrifund Investments from the former Telkom CEO Sipho Maseko – as well as a Workers’ Trust (ESOP).

With smart accounting and legal wrangling, Canal+ and MultiChoice are crafting it so that the MultiChoice’s Group’s shareholding in the new Licenco Co will be 49% and 20% on the dot in terms of voting rights – right what the regulators require.

“MultiChoice Group will retain its existing 75% direct interest in MultiChoice South Africa, which will exclude Licence Co. Phuthuma Nathi will similarly retain its existing 25% interest in MultiChoice South Africa,” Canal+ and MultiChoice announced in a takeover update statement on Tuesday.

“The transaction will not lead to any disruption for LicenceCo’’s South African viewers, who will continue to access its services as normal. Licence Co will enter into various commercial agreements with MultiChoice Group subsidiaries in relation to the services currently provided to Licence Co by other MultiChoice Group entities,” they stated.

“These relate to, among other things, the provision of content, technology, subscriber management and support and other functions.”

“Canal+ and MultiChoice are confident that the envisaged structure meets the requirements of all applicable laws, including the restrictions on foreign ownership and control of broadcasting licences contained in the Electronic Communications Act.”

Webber Wentzel and DLA Piper are the joint legal advisors to MultiChoice, while Herbert Smith Freehills and Werksmans are the advisors to MultiChoice on competition and broadcasting matters.

Citigroup Global Markets Limited and Morgan Stanley & Co International plc and the joint financial advisors to MultiChoice, while FTI Consulting are the so-called “strategic communications” advisors to MultiChoice.

Bowmans is the South African legal advisors to Canal+, with Bryan Cave Leighton Paisner LLP repping as the international legal advisors to Canal+, and BofA Securities and J.P. Morgan as Canal+’s joint legal advisors.

The Brunswick Group is the “strategic communications” advisors for Canal+.

In the joint statement, Maxime Saada, Canal+ CEO – and notably having his prepared quote placed first at the top – says “This transaction is an opportunity to create a unique global media company, with a strong presence across Africa, with the scale, expertise and creativity to compete and partner with the largest players within the media sector and beyond”.

 


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Celebrating a Visionary Leader Governor Charles Chukwuma Soludo, CFR at 65

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By Chukwuemeka Fred Agbata (CFA)

Today, we celebrate a leader whose unwavering commitment to “Everything Technology, Technology Everywhere” is turning bold ideas into real impact for Ndi Anambra.

As someone privileged to lead the Anambra State ICT Agency, driving e-governance initiatives, and now the Geeks & Founders Alliance for Soludo (GEFAS), a coalition of tech professionals, founders, and enthusiasts advancing technology and championing the re-election of Governor Soludo, I see first-hand how Mr. Governor’s vision keeps challenging us to push boundaries: from digitizing government operations to expanding free Solution WiFi, deploying smart solutions, and driving public-private partnerships that create jobs and make Anambra truly work for the people.

Today, under his visionary leadership, the combination of solid physical infrastructure, livable cities, and a growing digital backbone is fast positioning Anambra as an attractive hub for talent, investment, and innovation- a destination and not a departure lounge

Leadership is not about lofty speeches but clear action, and Governor Soludo has shown us that bold decisions, like removing Right of Way charges to drive connectivity, can transform an entire ecosystem.

As we mark his birthday, we rededicate ourselves to this vision: a smarter, more connected, and prosperous Anambra that works for all.

Happy Birthday, Mr. Governor, Oluatuegwu!

Here’s to more impact, more solutions, and a future that keeps rising.


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Court Upholds AVRS Legal Rights to Licence Audiovisual Works in Hotels

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Federal High Court sitting in Abuja has upheld the statutory right of the Audiovisual Rights Society of Nigeria (AVRS) to licence hotels and other business establishments for the public use of audiovisual works (movies and films) transmitted within their premises via Pay-TV subscriptions.

Court Upholds AVRS Legal Rights to Licence Audiovisual Works in Hotels

This is a landmark judgment that reaffirms the rights of Nigerian copyright holders and strengthens the creative ecosystem.

Justice Obiora Egwuatu, who gave the judgment, dismissed the case filed by Reiz Continental Hotel Limited against AVRS, where the hotel sought a declaration that it could not be compelled to pay copyright fees for audiovisual content (movies and films) accessed through subscription-based broadcasting.

In the ruling delivered on Thursday, July 24, the court held that AVRS, by virtue of its status as assignees of copyright in several audiovisual works, and approved collective management organisation (CMO) pursuant to Section 88 of the Copyright Act 2022, had demonstrated the legal basis of its licencing activities, and was entitled to issue copyright licences to users of audiovisual works belonging to it, including the Plaintiff (Reiz Continental Hotel Limited). Abuja Formula 1 Grand Prix ticketsNigerian cuisine recipes

The court rejected the claims of Reiz Continental Hotel that it was merely a recipient of broadcasts from a pay subscription television service, and therefore not liable to any licence from AVRS.

It held that the activities of Reiz Continental Hotel, operating a hospitality business, which is profit-driven, and possessing several television sets, which transmit audiovisual content, were carried out in contravention of sections 11(b), (c) and (f) of the Copyright Act in respect of the rights held by AVRS.

The court also held that the acts of transmission of audiovisual works by Reiz Continental Hotel, since done in the context of business, were in contravention of section 36(1)(a) and (g) of the Copyright Act, unless licensed by AVRS.

According to the court, the provision of section 36(1)(g) of the Copyright Act, 2022, renders a person liable for infringement of copyright for performing or causing to be performed for the purposes of trade or business or the promotion of a trade or business, any work in which copyright subsists.

The court further held that participation in a collective licencing agreement by the Hotel Owners Forum Abuja (HOFA), of which Reiz is a member, was binding on Reiz and stopped it from denying the validity of the agreement with AVRS.

Speaking on the judgment, Mike O. Akpan, legal counsel to AVRS and principal partner, Alpha-Edge Legal, said that the judgment is not only a legal victory for AVRS and its members, but also a significant affirmation of Nigeria’s commitment to upholding copyright law and protecting creative enterprise. Nigerian cuisine recipes

He added that it establishes a strong precedent for copyright enforcement across the hospitality sector and other commercial users of protected content.

Reacting to the landmark judgment, Mr. Mahmood Ali-Balogun, chairman of AVRS, said: “This judgment is a profound moment for members of AVRS. It affirms the legitimacy of our collective licencing structure and ensures that copyright owners in the film and movie sector are rightfully protected under the law.

“AVRS has always approached licencing with openness, fairness, and a readiness to dialogue. Today’s court decision is a win for our members, the film industry, for Nigerian creators, and for the nation. It strengthens the foundation upon which the creative economy can grow and attract investment.”


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NDPC Hides MultiChoice Privacy Violation Details Despite FOI Request- FIJ

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Nigeria Data Protection Commission (NDPC) has refused to release details of the data and privacy rights violation for which it fined MultiChoice Nigeria, despite receiving a Freedom of Information (FOI) request from FIJ.

NDPC Hides MultiChoice Privacy Violation Details Despite FOI Request- FIJ

FIJ otherwise Foundation for Investigative Journalism, is an independent, not-for-profit organisation that combats injustice, holds power to account and speaks for the voiceless.

In its announcement on July 6, the NDPC said it had fined MultiChoice Nigeria N766,242,500 for breaching the data and privacy rights of subscribers and even those who are not necessarily subscribers.

FIJ emailed the data protection commission an FOI request on July 9.

The commission acknowledged the receipt of the email that same day and added: “It has been forwarded to the relevant department and we would respond soon.”

Fifteen days later, FIJ got no other response from the NDPC.

In Nigeria, FOI requests have a seven-day timeframe, and it starts counting as soon as a public institution receives a request for public information.

FIJ understands that holidays, which include a Sunday and a public holiday, are to be excluded in the computation of the timeframe.

The receiving institution is mandated, within those seven days, to either provide the requested information or explain in detail why it is unable to do so based on the provisions of the FOI Act.

Established under the Nigeria Data Protection Act 2023, the NDPC’s tasks include safeguarding data privacy, enforcing regulations and promoting responsible data handling in the country.

When the Commission announced the N766.2 million fine against MultiChoice Nigeria, it said the company had violated the privacy rights of subscribers and allowed the illegal cross-border transfer of personal data of Nigerians.

MultiChoice Nigeria operates through various subsidiaries, such as DStv and GOtv. The NDPC said it launched an investigation into the company in the second quarter of 2024.

“NDPC found, among others, that Multichoice violated the data privacy rights of subscribers and their friends who are not necessarily subscribers,” the statement issued by NDPC read in part.

“The Commission also found that Multichoice carries out illegal cross-border transfer of personal data relating to data subjects in Nigeria. The depth of data processing by Multichoice is patently intrusive, unfair, unnecessary and disproportionate.”

FIJ’s FOI request aimed to understand the extent of the data and privacy breaches committed by MultiChoice Nigeria, the remedial measures directed by the NDPC and the specific channels through which the company collected the personal data of Nigerians.

Two weeks after the request was submitted, the NDPC has refused to respond.

Section 7, sub-section 4, of the Freedom of Information Act (2011) states, “Where the government or public institution fails to give access to information or record applied for under this Act or part thereof within the time limit set out in this Act, the institution shall, for the purposes of this Act, be deemed to have refused to give access.”

According to the Act, where a case of wrongful denial of access is established, the defaulting officer or institution commits an offence and is liable on conviction to pay a N500,000 fine.

At the time of this report, there was no publicly documented case of the NDPC granting an FOI request to share more details after an investigation.

In 2023, FIJ detailed how the Nigerian government often violated the FOI Act. Journalists at top newspapers in the country noted that government agencies had a habit of disregarding FOI requests, despite being legally obligated to respond.


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