According to industry reports, an independent board formed by MultiChoice has recommended an all-cash mandatory offer made by French media group Canal+ for the shares it does not already own in the South African broadcaster.
After a thorough review, the MultiChoice independent board concluded that the terms and conditions of the offer were not just acceptable but ‘fair and reasonable’ to MultiChoice shareholders, providing a strong sense of confidence about the deal’s integrity.
In April, Canal+ made a firm offer of US$6.69 in cash per MultiChoice share, meaning it would pay about US$1,8 Billion for the shares it does not own in a deal that valued the whole company at about US$2.8 Billion.
The strategic value of this deal is evident and promising. According to the board, it would create a pan-African broadcasting powerhouse with about 31.5 million subscribers, setting the stage for significant financial growth and success for both Canal+ and MultiChoice.
Canal+ and Multichoice are in the process of assessing and finalising a suitable structure for MultiChoice Group’s licensed activities to ensure compliance with the applicable limitations on foreign control when implementing the mandatory offer.
The deal would create a pan-African broadcasting powerhouse with about 31.5 million subscribers across more than 50 countries. It could promote African content to global audiences and compete internationally.
The French media company has a broad reach in French-speaking African nations, while MultiChoice has a stronger presence in English-speaking countries, including South Africa, Nigeria and Kenya.
