French billionaire, Vincent Bollore’s owned-Vivendi SE’s Canal+ has revised its bid for South Africa’s MultiChoice Group Ltd., increasing it by nearly 20% and entering exclusive talks to acquire control of the prominent African broadcaster.
The renewed all-cash offer stands at 125 rand per share, valuing the company at a total of 55 billion rand ($2.9 billion), a response to MultiChoice’s resistance to Canal+’s initial offer of 105 rand. Following the bid’s first announcement on Feb. 1, MultiChoice shares have surged by 52%, experiencing an additional 4.7% increase on Tuesday post the latest offer.
Canal+ Chairman and CEO, Maxime Saada, revealed that both companies have agreed to cooperate, with MultiChoice granting exclusivity to Canal+. Saada expressed confidence in their understanding of MultiChoice’s value, justifying the proposed price. Vivendi has progressively acquired MultiChoice stock, transforming into the largest investor, thereby triggering regulatory obligations for a takeover bid.
Saada also emphasized the focus on the mandatory-offer process, aiming to comply with guidelines and deliver the mandatory offer by April 8. Vivendi envisions merging its local Canal+ operations with MultiChoice, creating a group boasting nearly 50 million subscribers and enhanced resources for investing in local content and sports.
What you should know
Vivendi is collaborating with JPMorgan Chase & Co. and Bank of America Corp., as it prepares a formal offer due by April. MultiChoice will establish an independent board to evaluate and provide recommendations on the revised offer.
- The Public Investment Corp, managing the majority of the South African government employees’ pension funds, holds the second-largest stake in MultiChoice. Citigroup Inc. and Morgan Stanley are serving as MultiChoice’s financial advisers.
- MultiChoice, originating in South Africa in 1985, expanded across Africa in the early 1990s, offering packages featuring live English football matches and local shows.
- Spun off from Naspers Ltd. in 2019, it provides Canal+ access to a continent with the world’s fastest-growing and youngest population. Saada affirmed Canal+’s commitment to a Johannesburg Stock Exchange listing, supporting transformation and maintaining MultiChoice’s status in broad-based Black economic empowerment.