Vivendi SE’s Canal+ has officially made an all-cash bid to acquire the MultiChoice Group, placing a valuation of $2.9 billion (R35 billion) on the South African pay-TV operator’s shares. The proposal, disclosed in a filing on Monday, entails Canal+ offering to purchase shares at 125 rands each. This move comes as part of Canal+’s strategy to expand its presence in Africa and capitalize on the continent’s burgeoning market.
Following the bid, MultiChoice will convene a newly established independent board to deliberate on the offer. Despite initial reservations, MultiChoice shares have surged by 25% since Canal+ first expressed interest in acquiring the broadcaster back in February. To navigate regulatory hurdles in South Africa regarding foreign media ownership, Canal+ may enlist the support of South African billionaire Patrice Motsepe, though discussions are still in the early stages.
Canal+ has gradually increased its stake in MultiChoice since 2020, surpassing a 35% holding this year, thereby necessitating a mandatory takeover offer. Vivendi’s intention to list Canal+ as a separate entity aligns with its strategy to capitalize on growth opportunities in Africa and Asia. MultiChoice’s board has engaged Standard Bank as an advisor for the transaction, with both companies affirming that a combined entity would be better equipped to tackle the evolving dynamics of the media and entertainment industry amidst digitalization and globalization.
