Canal+, a French pay-TV giant owned by Vivendi SE’, has announced a non-binding offer to acquire MultiChoice Group, Africa’s largest pay-TV company.
With this Canal+ targets a strategic bid to expand its global footprint and strengthen the presence of MultiChoice internationally.
Per reports, the offer stands at 105 Rands per share, a substantial premium compared to MultiChoice’s closing price of 75 Rands on the preceding Wednesday, bringing about a surge in MultiChoice’s shares by as much as 27%.
Canal+ has been steadily increasing its stake in MultiChoice since 2020, and this offer signals a considerable leap in its African target. With Vivendi’s history of assertive takeovers, industry analysts have been anticipating a move like this, reminiscent of Vivendi’s past acquisition strategies in the gaming industry.
For Canal+, acquiring MultiChoice represents a key moment in its African expansion. Over the past decade, Canal+ has intensified its focus on the continent, witnessing substantial growth from 1 million to 7.6 million African subscribers by 2023. The acquisition of ROK Studios in 2019 further highlighted Canal+’s affirmation to enrich its content offerings in Africa.
However, regulatory hurdles stand large on the path to acquisition. South African law restricts foreign entities like Canal+ from owning more than 20% of a local broadcaster’s voting rights. Despite Canal+’s escalating stake in MultiChoice, a complete takeover seems improbable under current regulations.
Canal+ acknowledges the regulatory sector and expresses its commitment to complying with South African media sector laws. The firm’s proposal outlines its vision to create an African media platform, equipped with enhanced scale and resources to thrive in a fiercely competitive global market.
Maxime Saada, Chairman and CEO of Canal+, noted the potential of the acquisition for MultiChoice, envisioning increased investments in local content, technology, and talent. The proposed merger aims to secure MultiChoice’s long-term goal and strengthen its status as a leading media company in Africa.
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