French media group Vivendi’s Canal+ has made a mandatory offer to acquire all the remaining shares of South African broadcaster, MultiChoice, according to statements released by both companies on Monday.
Canal+, which already holds the majority stake in MultiChoice, is proposing to purchase each share at a price of 125 rand in cash. This offer values the pending acquisition at approximately 35 billion rand ($1.9 billion), and the entire company at around 55 billion rand, Reuters first reported.
The proposed offer price represents a substantial premium of 66% over MultiChoice’s closing share price of 75 rand on February 1, which was the stock’s last trading day before Canal+ presented its indicative offer.
What we know
If the deal materializes, it will establish a pan-African broadcasting giant with the capability to showcase African content to global audiences and compete on the international stage. Vivendi’s Canal+ holds significant influence in French-speaking African nations, while MultiChoice boasts a robust presence in English-speaking countries such as South Africa, Nigeria, and Kenya.
The potential acquisition points to Canal+’s strategic ambition to expand its footprint in Africa’s lucrative media market and capitalize on the continent’s growing demand for diverse entertainment content. With this move, Canal+ aims to leverage MultiChoice’s existing infrastructure and audience base to further cement its position as a leading player in the African broadcasting landscape.
What you should know
However, the proposed acquisition may face regulatory scrutiny and potential challenges, particularly regarding competition concerns and the impact on the broader media industry in Africa. As such, the deal is likely to undergo thorough review processes by relevant authorities to ensure compliance with regulatory frameworks and safeguard market fairness.
Despite the complexities and uncertainties surrounding the proposed acquisition, both Vivendi’s Canal+ and MultiChoice express optimism about the potential synergies and opportunities that could arise from combining their strengths and resources. As discussions progress, stakeholders and industry observers will closely monitor developments to assess the implications of this significant move on the African media landscape.
Backstory
The French media conglomerate Canal+ made an initial $2.5 billion bid to acquire MultiChoice, a Pan-African Pay-TV operator, in February. Led by French billionaire Vincent Bollore, Canal+ proposed 105 rand per share in cash, offering a 40% premium to MultiChoice’s recent closing price.
This proposal aligns with Vivendi’s strategy to integrate Canal+’s local operations with MultiChoice, forming a conglomerate boasting nearly 50 million subscribers.
However, MultiChoice rebuffed the offer, deeming it undervalued at the proposed R105 per share. ] Canal+ 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 stood 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.
Meanwhile, reports suggested that Patrice Motsepe, one of Africa’s billionaires and South Africa’s wealthiest Black individual, initiated discussions with Vivendi SE’s Canal+ to potentially join its bid for MultiChoice Group.