Vivendi’s Canal+ raises stake in South Africa’s MultiChoice to 40.8%
TLDR
- Canal+ increases stake in South African broadcaster MultiChoice to 40.83% through acquisition of 3.7 million shares.
- The acquisition follows Canal+'s recent all-cash mandatory offer to purchase all remaining shares of MultiChoice.
- Canal+ may need to adjust offer prices if shares are acquired at prices above 125 rand to ensure competitiveness.
French media conglomerate Vivendi's subsidiary, Canal+, announced this week its acquisition of 3.7 million shares in South African broadcaster MultiChoice, boosting its stake to 40.83%. This move follows Canal+'s recent all-cash mandatory offer to purchase all remaining shares of MultiChoice.
Canal+ had previously indicated its intention to potentially acquire additional shares of MultiChoice in the market throughout the offer. If these shares are acquired at prices exceeding 125 rand each, Canal+ is obligated to raise the offer price accordingly, ensuring it remains at least equal to the highest consideration paid per MultiChoice share.
The stake increase from 36.6% as of April 8 was achieved through share purchases made between April 12 and April 17, at prices ranging from 117.50 rand to 116 rand per share.
Key Takeaways
Africa's rapid adoption of broadband and mobile internet, coupled with the increasing prevalence of smartphones, presents significant opportunities for growth in the media and entertainment sector. Canal+ anticipates that these trends will drive transformative changes in Africa's media landscape, paving the way for innovative content delivery and distribution models. The proposed deal between Canal+ and MultiChoice heralds a new era of consolidation and expansion in the African broadcasting industry, positioning the merged entity as a key player in shaping the future of media and entertainment on the continent and beyond.
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