Vivendi SE’s Canal+ has made an all-cash formal offer to acquire MultiChoice Group, a South African pay-TV operator, for US$2.9 billion in an effort to expand its presence on the continent. Canal+ has proposed to purchase MultiChoice shares at US$6.71 each, which is now under consideration by an independent board of MultiChoice.
Canal+ has been buying shares in MultiChoice since 2020 and has already acquired a 35% holding in the company, triggering a mandatory takeover offer. If the deal goes through, it would give Canal+ greater access to the African market, which is home to the world’s fastest-growing and youngest population. However, the French broadcaster must first navigate South Africa’s limits on foreign media ownership.
MultiChoice shares have already seen a 25% increase since Canal+ first announced its plan to purchase the broadcaster in February. The South African billionaire Patrice Motsepe could join Canal+ in the acquisition, but discussions are still in their early stages.
Canal+ reserves the right to purchase more MultiChoice shares in the market, and if these are bought at more than a certain amount, the offer price would be raised accordingly. Vivendi plans to keep MultiChoice listed on the Johannesburg Stock Exchange and has appointed Standard Bank as its advisor on the deal.
According to a joint statement by MultiChoice and Canal+, a combined group would be better positioned to address the challenges and opportunities resulting from the digitalization and globalization of the media and entertainment sector, making it a win-win situation for both companies.
