Canal+, a subsidiary of Vivendi SE, has confirmed an offer to acquire all the issued shares of MultiChoice Group not already owned by the group at a purchase price of R125 per share, payable last on Monday.
This was revealed in a joint statement signed by both companies. According to the statement, this was in line with the timeline agreed with the Takeover Regulation Panel (TRP) of South Africa.
According to recent reports, the Vivendi-owned Canal+ has acquired even more shares in MultiChoice as the two companies work together to complete the buyout. Canal+, which has continued to buy MultiChoice shares on the open market, now owns a 36.6% stake in the South African company.
Part of the statement reads, “A combined group would be better positioned to address key structural challenges and opportunities resulting from the progressive digitalisation and globalisation of the media and entertainment sector.”
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.
Canal+ said it believes the competitive landscape for Africa’s media and entertainment industry will undergo further profound changes as the continent rapidly adopts broadband and mobile internet. Smartphone adoption is also rising.
Commenting on this, Maxime Saada, Canal+’s Chairman and CEO said, “Following constructive engagement with MultiChoice, we are pleased to have issued a joint firm intention announcement to make an offer today, representing a significant premium for the shareholders of MultiChoice.
“Through combining our companies, we will be well-positioned to invest even more in local productions and sports content. The complementary geographies, considerable scale, and strengthened capabilities achieved by the combination of these two companies will ensure that Africa can tell her own stories on her terms both locally and globally.
“We are excited about these opportunities, which will be supported by further investment in technology, including the continued offering of a leading satellite service, and rolling out more innovative streaming products.”
The companies also added, “A combined group would be better positioned to address key structural challenges and opportunities resulting from the progressive digitalisation and globalisation of the media and entertainment sector.”
Canal+ reserves the right to buy more MultiChoice shares in the market during the offer. Should the French company buy these shares at more than 125 rands each, it is obliged to increase the offer price, according to the statement.
Last week, MultiChoice announced that outgoing chairman Imtiaz Patel would remain in his role until the completion of the ongoing Canal+ transaction. It was previously announced that Patel would step down as the video entertainment group’s chairman with effect from 1 April.
The offer will be conditional on customary regulatory approval for a transaction of this nature, and will comply with all other relevant regulatory requirements, concludes the statement.
Recall that Canal+ first made an offer for MultiChoice in February 2024, offering a 40 per cent premium on the share price. MultiChoice’s board declined, saying that it ‘significantly undervalued’ the company.to enhance their bottom lines.