French media conglomerate Canal+ has made a move to acquire South African pay-TV giant MultiChoice for $1.7 billion.
The offer, valued at approximately R31.7 billion, represents a substantial premium with Canal+ proposing R105 per ordinary share, a 40% increase over MultiChoice’s recent closing price of R75.
Canal+’s interest in MultiChoice has been brewing over the past four years, during which it steadily acquired shares in the South African company, amassing a holding of over 30%.
Now, with this proposed bid, Canal+ aims to gain full control of MultiChoice, transforming it into a global-scale media entity.
Maxime Saada, Chairman and CEO of Canal+, expressed the strategic importance of the potential acquisition, stating that for MultiChoice to flourish in Africa and beyond, it requires a strategy that enhances its scale and expertise.
He emphasized Canal+’s commitment to realizing MultiChoice’s full potential and creating a formidable African media business capable of competing on an international level.
Canal+’s intentions extend beyond the acquisition itself. The firm disclosed its plans to list, responding to its parent company Vivendi’s initiative to divide into four entities, with a goal of eventually listing in South Africa.
This move not only highlights Canal+’s ambitions for expansion but also underscores its recognition of Africa’s significance in the global media landscape.
The bid from Canal+ comes at a time when MultiChoice has been experiencing notable growth, with its user base increasing by 69% in the last six months.
The potential acquisition signals a new chapter in the evolving media landscape, with Canal+ poised to make a substantial impact on the African and global media markets.
