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In a recent turn of events, MultiChoice, the South Africa-based media giant and owner of SuperSport, has firmly rejected a full takeover offer from Canal Plus, a prominent pay-TV broadcaster based in France.
The decision came after MultiChoice’s board deemed the offer to significantly undervalue the company. This development marks a pivotal moment in the ongoing dynamics of the media industry in sub-Saharan Africa.
Canal Plus, already holding a substantial 31.7% stake in MultiChoice, unveiled a non-binding indicative offer on February 1st, valuing each ordinary share at ZAR105 ($5.62).
Despite its existing position as the largest shareholder, the French pay-TV operator sought to acquire the remaining ordinary shares, pending regulatory approval.
Canal Plus initially entered the scene in early 2020, acquiring a stake in MultiChoice. Over the subsequent years, the French broadcaster strategically increased its shareholding, culminating in the recent attempt at a full takeover. The move was part of Canal Plus’ broader strategy to expand its influence in the African media landscape.
MultiChoice’s decision to reject the takeover bid was rooted in the belief that Canal Plus’ offer failed to accurately reflect the true value of the company.
The board expressed concerns over the undervaluation and concluded that continuing talks with the French broadcaster would not be in the best interest of MultiChoice and its stakeholders.
The rejection sets the stage for potential shifts in the competitive landscape of the sub-Saharan African media market. MultiChoice, with its stronghold as the main sports broadcaster in the region, remains committed to charting its own course.
Meanwhile, Canal Plus may need to reconsider its approach and explore alternative strategies to solidify its presence in the African market.
MultiChoice’s firm stance against Canal Plus’ takeover offer underscores the company’s commitment to maintaining its perceived value and independence.
The rejection not only reflects the dynamics of the specific deal but also highlights the broader competitive environment in sub-Saharan Africa’s media industry.
As both companies navigate the aftermath of this decision, industry observers are keenly watching for potential ripple effects and strategic adjustments in the ever-evolving landscape of African media.
