Following a rejected initial offer in February 2024, Canal+ has upped the ante in its bid to acquire MultiChoice, offering a valuation of R125 per share.
This represents a significant increase of $400 million compared to the previous offer and a 66.66% premium on MultiChoice’s closing price before Canal+’s initial proposal, according to Bloomberg Reports.
In a joint statement issued on April 8th, both companies highlighted the strategic advantages of a potential merger, citing enhanced capabilities to tackle challenges and opportunities in the rapidly evolving media and entertainment landscape shaped by digitalization and globalization.
With Canal+ already holding the title of MultiChoice’s largest shareholder, the new deal values the remaining stake at R35 billion ($1.9 billion). Canal+ has been steadily increasing its ownership since acquiring a 30% stake in February 2023, ultimately surpassing the 35% threshold and now owning 36.6% of the company.
Maxime Saada, Chairman and CEO of Canal+, expressed optimism about the synergy between the two entities, particularly in their ability to amplify African narratives both locally and internationally.
However, Canal+ faces hurdles in its pursuit of MultiChoice, notably South African broadcast regulations that impose strict limits on foreign ownership of broadcast licenses, including a 20% cap on voting rights.
If the deal progresses, MultiChoice is likely to undergo privatization and delisting from the Johannesburg Stock Exchange (JSE). Canal+ hinted at the possibility of a secondary inward listing in the joint statement, contingent upon Vivendi’s plans to divide into “several separately listed entities.”
