Canal+ Group, A french Media Giant, Makes $2.9 Billion offer for MultiChoice!
French media giant Canal+, the largest shareholder in MultiChoice, has made a $2.9 billion offer to acquire the South African pay TV provider, a $400 million increase from the rejected valuation in February.
Canal+, the biggest shareholder in MultiChoice with a 36.6 per cent stake, confirmed a second mandatory offer of 125 South African Rand ($6.7) per share for the remaining shares. This is significantly above its initial offer of 105 South African Rand ($5.6) per share on February 1.
Canal+ Group Chairman and CEO Maxime Saada said: “Following constructive engagement with MultiChoice, we are pleased to have issued a joint firm intention announcement to make an offer today, representing a significant premium for the shareholders of MultiChoice. Canal+ is confident in making this offer, at a level that exceeds the minimum required by regulation. Due to the incredible future, we believe that Canal+ and MultiChoice can build together.”
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MultiChoice, which was founded in the early 1980s with support from South African technology giant Naspers, has grown to serve 20 million subscribers across Africa. Canal+ Group began accumulating a stake in MultiChoice in 2020, laying the groundwork for its current bid to acquire the company.
However, the acquisition is not yet a done deal, as Canal+ still needs to navigate South African rules limiting foreign ownership of local commercial broadcasters.
In a nod to concerns over ownership, the joint statement said that both partners recognize the importance of economic transformation and Broad-Based Black Economic Empowerment (BBBEE) in South Africa.
“Canal+ intends to support MultiChoice in its continued efforts to foster BBBEE initiatives and the transformation of its South African business as a commercial and societal imperative,” read the statement.
