Canal+ and MultiChoice have issued a joint statement confirming the African pay-TV operator’s acceptance of a takeover offer by the Vivendi unit.
Canal+ has made a mandatory offer to acquire the remaining MultiChoice shares at US$6.69 per share, valuing the South African pay-TV operator at about US$3 billion.
The companies have also released a Combined Circular, including a report by Independent Experts Standard Bank, declaring the offer “fair and reasonable.” After reviewing the valuations in the report, the MultiChoice Board concurred that the terms and conditions of the offer are “fair and reasonable to MultiChoice shareholders.”
Maxime Saada, Chairman and CEO of Canal+ Group, expressed his optimism: “By combining the scale, complementary geographies, and content portfolios of our two companies, we are poised to create an entertainment group with international reach and strong local roots. This strategic move will enable us to provide viewers across the continent with a local champion that can both challenge and partner with the largest media companies in the world, serving powerful local stories and compelling sport while investing in the local creative and sporting ecosystems to ensure their long-term success.”
Elias Masilela, Chairman of MultiChoice Group, added: “The offer from Canal+ endorses MultiChoice’s 40-year track record and our compelling continental growth strategy. It is gratifying to note that foreign investors share our view that South Africa and Africa remain attractive growth markets. While we are successfully delivering on our mandate and strategy, Canal+’s offer allows us to accelerate these plans and form a global entertainment business with Africa at its heart, increasing shareholder value in the process.”
The combined company will maintain and significantly expand its presence in French and English-speaking markets. While Canal+ naturally dominates French-speaking African nations, MultiChoice’s strong presence in English-speaking countries, including South Africa, Nigeria, and Kenya, will provide a solid foundation for further growth and expansion.
