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In a strategic move to strengthen its presence in the African market, French media giant Canal+ has officially submitted an enticing offer to acquire South African pay TV company MultiChoice Group.
The announcement, made on Thursday, unveils Canal+’s ambitious plan to not only secure a majority stake but also secure a listing in South Africa.
As a major shareholder in Vivendi, boasting an impressive 31.67 percent stake according to LSEG data, Canal+ is prepared to make a substantial investment, offering a cash consideration of 105 rand ($5.61) per MultiChoice ordinary share.
This move is not only a testament to Canal+’s confidence in MultiChoice’s potential but also reflects a 40 percent premium to MultiChoice’s closing share price of 75 rand on the previous Wednesday.
Canal+ started its streak of acquisitions in October 2020 when it acquired 6.5% of MultiChoice shares in the open market. Since then, the company has continued to make regular increases to its stake.
Maxime Saada, Chairman and CEO of Canal+, expressed optimism about the potential acquisition, emphasizing the need for MultiChoice to adopt a strategic approach that enhances its scale and leverages strengthened local and global expertise.
Saada stated, “For MultiChoice to continue to thrive in Africa, it will require a strategy that enhances its scale as well as strengthened local and global expertise. Our potential offer, if successful, would be an important next step for MultiChoice to realize its full potential.”
Saada further added that, if the acquisition proves successful, MultiChoice would gain access to the necessary resources to invest in scale, promote local African talent and stories, and leverage technology to facilitate growth in Africa. This move positions MultiChoice to competently take on global streaming media giants.
As Africa’s largest pay TV company, MultiChoice has consistently invested billions of rand to fend off competition from international streaming giants such as Netflix, Amazon, and Disney.
These global players have also been actively investing in local content, creating a competitive landscape that MultiChoice is navigating with strategic partnerships and significant financial backing.
Canal+’s proposed acquisition is poised to reshape the dynamics of the African media and entertainment industry.
The potential infusion of resources and expertise from the French media giant could unlock new opportunities for MultiChoice, enabling it to not only survive but thrive in a rapidly evolving landscape.
The African media market awaits the outcome of this bold move, as industry watchers speculate on the potential impact of Canal+’s acquisition on MultiChoice’s future trajectory.
