Canal+ Acquisition of MultiChoice: A Strategic Move in the African Entertainment Industry

  • Canal+ Group's strategic acquisition of MultiChoice shares at a premium price signals significant market confidence and growth prospects.
  • The cooperation agreement and offer conditions ensure a smooth process and regulatory compliance for all stakeholders involved.
  • The proposed European listing and secondary inward listing on the JSE offer exciting opportunities for investors and market expansion.

Canal+ Group’s proposed mandatory offer to acquire MultiChoice shares marks a significant development in the African entertainment and media landscape. This move has far-reaching implications for shareholders, the industry, and the broader market dynamics.

Background of the Acquisition

Canal+ Group, a renowned French media conglomerate, has announced its intention to acquire all issued ordinary shares of MultiChoice not already owned by Canal+ at a price of ZAR 125.00 per share. This offer represents a substantial premium compared to MultiChoice’s recent share prices, offering shareholders an opportunity to realize significant value.

Strategic Rationale Behind the Acquisition:

  1. Global Entertainment Leadership: Canal+ aims to establish itself as a global entertainment leader with Africa as its strategic focus. The acquisition of MultiChoice aligns with this vision, combining scale, complementary geographies, and international reach.
  2. Enhanced Market Presence: The combined entity would operate in over 50 countries across Africa, Europe, and Asia, leveraging synergies and scale across its entire footprint. This enhanced market presence is expected to drive growth and unlock new opportunities.

Financial Implications for Shareholders

The offer price of ZAR 125.00 per share represents a substantial premium for MultiChoice shareholders. Comparing the offer price to MultiChoice’s recent share prices highlights the attractive valuation offered to shareholders.

Share PriceOffer Price (ZAR 125.00)Premium (%)
Last Closing Price75.0066.66%
30 Day VWAP76.2463.96%

Cooperation Agreement and Offer Conditions:

  1. Cooperation Agreement: MultiChoice and Canal+ have entered into a cooperation agreement, including exclusivity undertakings and cooperation in fulfilling offer conditions. This agreement ensures a smooth process and mutual cooperation between the two entities.
  2. Offer Conditions: The offer is subject to various conditions, including regulatory approvals, financial surveillance department approvals, and competition tribunal approvals. Fulfillment of these conditions is essential for the offer to proceed.

Funding and Bank Guarantee

Canal+ has confirmed that the offer price will be fully funded from available funds. Additionally, a bank guarantee has been provided to ensure payment in case of any default, providing reassurance to shareholders.

Listing Plans and Market Impact:

  1. European Listing: Canal+ is considering a European listing, offering an opportunity for South African investors to participate in the combined entity through a secondary inward listing on the JSE. This listing plan could have a positive impact on market dynamics and investor sentiment.
  2. Market Reaction: The announcement of Canal+’s offer and the strategic implications have already had an impact on the market, with MultiChoice share prices reflecting the premium offered by Canal+. Market analysts are closely monitoring developments and investor reactions.


Canal+ Group’s proposed acquisition of MultiChoice shares represents a strategic move aimed at building a global entertainment leader with Africa as its core market. The offer price, premium valuation, cooperation agreement, and listing plans signal a transformative phase in the African entertainment and media industry. Shareholders, regulators, and industry stakeholders are closely watching this development, anticipating its impact on market dynamics and future growth prospects.

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