In a significant move in the media industry, Vivendi’s French media division, Canal+, has put forward a mandatory all-cash offer to acquire all outstanding shares of South African broadcaster MultiChoice for 35 billion rand ($1.9 billion). This follows Canal+’s earlier proposal of 105 rand per share on February 1, which was rejected by MultiChoice for undervaluing the company.
The need for a mandatory offer arose after Canal+, the largest shareholder of MultiChoice, increased its stake in the firm beyond the 35% threshold, currently holding 36.6%. The new offer, priced at 125 rand per share, values MultiChoice at approximately 55 billion rand.
As of 0759 GMT, MultiChoice shares saw a 3.7% increase, trading at 116 rand. The potential merger aims to establish a pan-African broadcasting giant with around 31.5 million subscribers across more than 50 countries, enhancing the global reach of African content and bolstering international competitiveness.
Canal+ has a strong presence in French-speaking African nations, while MultiChoice dominates in English-speaking regions such as South Africa, Nigeria, and Kenya. The companies believe that combining forces will better position them to tackle the challenges and opportunities arising from the digitalization and globalization of the media and entertainment sector.
MultiChoice’s independent board is set to review the offer. Canal+ may acquire additional MultiChoice shares during the offer period, with a commitment to increase the offer price if purchases exceed 125 rand per share.
However, the deal faces regulatory hurdles, particularly South Africa’s strict Black economic ownership requirements and foreign media ownership restrictions, which limit voting rights to 20%. Canal+ Group’s chairman and CEO, Maxime Saada, expressed confidence in finding workable solutions with local partners. Reports last month suggested that billionaire Patrice Motsepe might join Canal+’s bid.
The companies have pledged to comply with all relevant laws and will provide further details regarding regulatory compliance.
