French media giant Canal+ makes a mandatory offer to buy Multichoice

Canal+, a french media giant, has made a mandatory offer to acquire all the remaining shares of South African broadcaster, MultiChoice.

This is according to statements released by both companies on Monday.

Vivendi’s Canal+, which already holds the majority stake in MultiChoice, is proposing to purchase each share at a price of 125 rand in cash.

This offer values the pending acquisition at approximately 35 billion rand ($1.9 billion), and the entire company at around 55 billion rand.

The proposed offer price represents a substantial premium of 66% over MultiChoice’s closing share price of 75 rand on February 1, which was the stock’s last trading day before Canal+ presented its indicative offer, Reuters reported.

If the deal, if sealed, will establish a pan-African broadcasting giant with the capability to showcase African content to global audiences and compete on the international stage.

Vivendi’s Canal+ holds significant influence in French-speaking African nations, while MultiChoice boasts a robust presence in English-speaking countries such as South Africa, Nigeria, and Kenya.

The potential acquisition points to Canal+’s strategic ambition to expand its footprint in Africa’s lucrative media market and capitalize on the continent’s growing demand for diverse entertainment content. With this move, Canal+ aims to leverage MultiChoice’s existing infrastructure and audience base to further cement its position as a leading player in the African broadcasting landscape.