French media powerhouse Canal+ has recently expressed its interest in acquiring MultiChoice, a major player in the South African broadcasting landscape. This strategic move, outlined in a statement released on Thursday, marks Canal+’s intent to expand its influence in the region and further solidify its position in the African market.
According to the statement, Canal+ has formally submitted a non-binding indicative offer to the Board of Directors of MultiChoice, signaling its ambition to acquire all outstanding ordinary shares that it doesn’t already own. The offer is contingent upon securing the necessary regulatory approvals, a crucial step in such significant transactions.
In the proposed deal, Canal+ envisions a cash consideration of R105 per MultiChoice ordinary share. This represents a substantial premium of 40% over MultiChoice’s closing share price of R75 on January 31, 2024. Canal+ has been a prominent shareholder in MultiChoice for the past three years, gradually becoming the company’s largest shareholder.
Maxime Saada, Chairman and CEO of Canal+, emphasized the strategic importance of the potential acquisition, stating, “For MultiChoice to continue to thrive in Africa, it will require a strategy that enhances its scale as well as strengthens local and global expertise.” Saada expressed confidence in the offer, presenting it as a pivotal step for MultiChoice to realize its full potential.
The collaboration with Canal+ is expected to provide MultiChoice with the resources necessary to invest in scaling operations, fostering local African talent, producing compelling stories, and incorporating cutting-edge technology. This move is seen as a means for MultiChoice to compete more effectively with global streaming media giants.
Canal+ acknowledges that the progression of the potential offer is subject to the outcome of further engagements with MultiChoice and confirmation through due diligence. The media giant plans to deliver a firm intention letter to the Independent Board upon the satisfactory completion of this process. However, the statement emphasizes that there is currently no certainty regarding the terms or progression of the potential offer.
Respecting the legal and regulatory landscape, Canal+ assures that any firm intention letter submitted will adhere to South African media sector laws and regulations, especially those related to companies listed on the Johannesburg Stock Exchange. The company is committed to fulfilling its obligations and responsibilities throughout the acquisition process.
Canal+ is actively preparing for its listing, following the announcement of the unbundling from its parent company, Vivendi. This strategic move aims to enable investors to benefit from the synergy between Canal+ and MultiChoice, further underscoring the commitment to the South African market. The media powerhouse’s ultimate goal is to obtain a listing in South Africa, aligning with its vision for a combined entity that brings together the strengths of both Canal+ and MultiChoice.
As the acquisition unfolds, stakeholders in South Africa’s media landscape will be closely monitoring the developments, recognizing the potential impact on MultiChoice’s future trajectory and the broader dynamics of the African broadcasting industry.
