Canal+, a subsidiary of Vivendi SE, has formally tabled a $2.9 billion all-cash offer for MultiChoice Group Ltd., a major South African broadcaster.
This move comes as part of Canal+’s broader strategy to bolster its presence on the continent by leveraging MultiChoice’s extensive reach and resources.
The offer, which values MultiChoice’s shares at 125 rand ($6.7) apiece, represents a significant milestone in Canal+’s pursuit of expansion opportunities in Africa.
MultiChoice, in a filing jointly made with Canal+, confirmed the offer, which will now be subject to review by a newly constituted independent board of MultiChoice.
This bid represents Canal+’s commitment to navigate the complexities of South Africa’s regulatory environment, particularly concerning foreign media ownership restrictions.
Reports suggest that discussions are underway involving South African billionaire Patrice Motsepe, indicating potential collaboration to facilitate the deal.
Canal+ has expressed its intent to not only acquire existing MultiChoice shares but also reserve the right to purchase additional shares in the market. If acquired at prices exceeding the initial offer, Canal+ has committed to adjusting the bid price accordingly.
The French media conglomerate’s interest in MultiChoice dates back to 2020 when it began acquiring shares, ultimately surpassing the 35% ownership threshold this year, thereby triggering a mandatory takeover offer.
Vivendi has identified Africa as a key growth market, given its burgeoning population and economic potential. The proposed acquisition of MultiChoice aligns with Vivendi’s broader strategy to capitalize on high-growth regions.
MultiChoice, founded in South Africa in 1985 and subsequently expanded across the continent, has emerged as a prominent player in the African media landscape. Its spin-off from Naspers Ltd. in 2019 paved the way for independent operations and strategic partnerships.
The potential merger of Canal+ operations with MultiChoice could create a media powerhouse boasting nearly 50 million subscribers across the continent.
This consolidation could facilitate increased investments in local content production and sports broadcasting, catering to diverse audiences and enhancing cultural representation.
While the offer awaits deliberation by MultiChoice’s board, industry analysts anticipate robust discussions considering the significant implications for both companies and the broader African media industry. If successful, Canal+’s bid for MultiChoice could reshape the African media landscape, ushering in a new era of competition and innovation in the sector.
