This comes after Canal+ secured a 94.39% stake in MultiChoice, completing one of the largest transactions in Africa’s media industry. Its buyout offer of R125 per share was accepted by more than 90% of MultiChoice shareholders, giving the French company legal grounds to execute a “squeeze-out” of the remaining investors in accordance with section 124(1) of South Africa’s Companies Act.

“Upon the exercise of the squeeze-out, MultiChoice Group will become a wholly-owned subsidiary of Canal+, and an application will be made for the termination of the listing of MultiChoice Shares on the JSE,” the companies said in a joint statement.

Once the delisting process is completed and approved by the South African Reserve Bank, Canal+ will initiate a secondary inward listing on the JSE. 

The group, which was listed on the London Stock Exchange in 2024 under parent company Vivendi SE, said the new listing will enable South African investors to retain access to its expanded global operations.

“A secondary inward listing will preserve South African investor access and market liquidity, allowing local investors to hold shares in a leading global media and entertainment company on the JSE,” the company stated. 

“It will broaden the investor base of Canal+, reinforce the company’s long-term commitment to South Africa and Africa’s creative economy, and support continued institutional exposure to the media sector.”

The $3 billion acquisition is the largest in Canal+’s history, establishing a combined entity that serves more than 40 million subscribers across nearly 70 countries in Africa, Europe, and Asia. 

The integration of MultiChoice’s regional dominance with Canal+’s global reach marks a major consolidation in the continent’s pay-TV and streaming industry.

“We are pleased with the overwhelming success of the offer,” said Canal+ Chief Executive Officer Maxime Saada. “Following this outcome, we will be moving ahead with a squeeze-out of MultiChoice shareholders and a subsequent secondary inward listing of CANAL+ in Johannesburg.”

Saada reaffirmed that the company’s expansion into Africa was driven by a strategic and cultural commitment. “Given the important role Canal+ will now play in South Africa and across the African continent, I believe it to be critically important that domestic investors have the ability to have exposure to it,” he said.

The acquisition is expected to boost investment in Africa’s creative industries, with Canal+ positioning itself as a long-term player in the region’s fast-evolving entertainment sector. 

As integration begins, both firms plan to announce changes to their executive structures to reflect the merger of operations and leadership across markets.

With this move, Canal+ strengthens its presence in Africa and also cross-continental media collaboration, uniting European capital with African creativity in a rapidly globalising entertainment industry.

The post Canal+ to Delist MultiChoice, Push Ahead with Secondary Listing on SA’s JSE appeared first on Tech | Business | Economy.

The rejection comes after Canal+ proposed a premium bid to acquire MultiChoice at R31.7 billion ($1.6 billion), to expand its global footprint and bolster MultiChoice’s international presence.

Canal+’s offer, announced on Thursday, proposed acquiring MultiChoice shares at 105 rand ($5.55) each, representing a 40% premium over MultiChoice’s closing share price of 75 rand on January 31. Despite the allure of the premium bid, MultiChoice’s board concluded that the offer undervalues the company and its future prospects.

In a statement released to the Johannesburg Stock Exchange, MultiChoice affirmed its decision, asserting that the proposed offer price fails to adequately reflect the true value of the group, particularly when considering its potential for future growth and synergy opportunities. While the board remains open to maximizing shareholder value, it made clear that Canal+’ offer does not provide a basis for further engagement at the proposed price point.

Canal+, which currently holds a 31.67% stake in MultiChoice, escalated its stake to 35.01% following the offer announcement, prompting MultiChoice to request the Takeover Regulation Panel to adjudicate whether a mandatory offer should be extended to all ordinary shareholders in compliance with the Companies Act.

Analysts speculate that Canal+ may not interpret MultiChoice’s rejection as an indication to abandon its pursuit, especially considering its persistent efforts to increase its stake in the company since 2020. With Vivendi’s familiarity with hostile takeovers and the complexities involved, Canal+ could pursue alternative strategies to bolster its position in MultiChoice.

Per South African regulations, any stake exceeding 35% would necessitate Canal+ to make a mandatory offer to MultiChoice shareholders, potentially catalyzing further developments in the unfolding situation.

The post MultiChoice Rejects Canal+ Offer, Citing Undervaluation appeared first on Tech | Business | Economy.

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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