Canal+ makes bid to acquire MultiChoice

Source: MultiChoice

Canal+ Group has made a US$1.7 billion bid to acquire South Africa’s Multichoice.

The Vivendi-owned pay TV operator has confirmed it has submitted an indicative offer to acquire the 68% of South Africa’s MultiChoice that it does not already own. Canal+ says it will pay ZAR105 a share, representing a 40% premium to MultiChoice’s closing share price yesterday.

The French group said that, subject to a confirmatory audit, it would submit a firm offer to MultiChoice’s board.

Canal+ noted that parent Vivendi is in the midst of preparing to float it as a separately listed company, enabling investors to benefit directly from the merger with MultiChoice, and said that one goal with the acquisition would be to be listed on South Africa’s stock exchange.

Canal+, which has progressively upped its stake in the South African pay TV leader over a three year period, said it wanted to create a major African media group capable of growing in a highly competitive market, offering a service enriched by sports, local and global content and enabling African content to reach a wider international audience.

The acquisition of MultiChoice, with its presence in Anglophone markets across the continent, would make Canal+, which operates pay TV services across Francophone African countries, the major player in the market.

International strategy

It also marks a significant upping of the French group’s strategy of internationalising its business. Canal+ has seen most growth in recent years from the international operations, including Africa, while in Europe it has expanded its presence through the acquisition of M7 Group and its major stake in Nordic streamer Viaplay.

MultiChoice meanwhile confirmed that it had received an offer and advised shareholders of Canal+’s high-level non-binding intention to acquire the remaining ordinary shares in MultiChoice that it does not currently own, and said it would provide updates in the case of further developments, advising stockholders to exercise caution when dealing in the group’s securities in the interim.

“Canal+ is a long-term investor in MultiChoice and in South Africa, and is proud to be actively involved in the African media sector for 30 years. To accelerate the development of MultiChoice in Africa and beyond, it will be necessary to develop a strategy that allows it to grow in size and reinforce its local and global footprint. Our potential offer, if it complete, will constitute an important stage in allowing MultiChoice to realise its full potential. Combined with Canal+, MultiChoice will have at its disposal the necessary resources to gain scale and invest in local African talent and stories, and have the proprietary technological resources needed,” said Canal+ CEO Maxime Saada.

“We are convinced that the merger of our two groups would allow the new combined entity to overcome the structural challenges that confront the media sector to develop authentic and ambitious African content, to offer greater support to local production companies and to widen access to sport for its subscribers while investing in local sport.”