Canal+ makes mandatory buyout offer for South Africa’s MultiChoice
TLDR
- Vivendi's Canal+ makes all-cash offer to acquire South African broadcaster MultiChoice for 35 billion rand, priced at 125 rand per share.
- MultiChoice rejected earlier offer of 105 rand per share as undervalued, prompting Canal+ to raise its stake to 36.6%.
- MultiChoice shares surge by 3.7% to 116 rand following Canal+'s increased stake and revised offer.
French media conglomerate Vivendi's Canal+ has made an all-cash mandatory offer to acquire all remaining shares of South African broadcaster MultiChoice for 35 billion rand ($1.9 billion).
This offer, priced at 125 rand per share, comes after MultiChoice rejected Canal+'s earlier indicative offer of 105 rand per share on February 1, deeming it undervalued.
Canal+, MultiChoice's largest shareholder, raised its stake in the company above the 35% threshold, necessitating the mandatory offer. With its increased stake of 36.6%, Canal+'s new offer values MultiChoice at around 55 billion rand. Following the announcement, MultiChoice shares surged by 3.7% to 116 rand by 0759 GMT.
Key Takeaways
The proposed deal between Canal+ and MultiChoice aims to establish a pan-African broadcasting giant, boasting approximately 31.5 million subscribers spread across over 50 countries. This move positions the combined entity to leverage African content for global audiences and compete on a larger scale internationally. While Canal+ has a significant foothold in French-speaking African nations, MultiChoice's strength lies in English-speaking countries like South Africa, Nigeria, and Kenya. With Africa's rapid adoption of broadband and mobile internet, coupled with the increasing prevalence of smartphones, Canal+ anticipates significant shifts in the continent's media and entertainment landscape, signaling a transformative period ahead.
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