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French media giant Canal+ makes $2.9 billion offer for MultiChoice

Multichoice is a South African company that operates DStv, a major satellite television service in Sub-Saharan Africa, and GOtv, a minor service operating in over nine countries of this area and Showmax service. (Photo: Riccardo Milani/Hans Lucas via AFP)

By Amina Wako | 08 Apr 2024

The deal would create a pan-African broadcasting powerhouse capable of bringing African content to global audiences and competing on an international scale.

French media giant Canal+, the largest shareholder in MultiChoice, has made a $2.9 billion offer to acquire the South African pay TV provider, a $400 million increase from the rejected valuation in February.

Canal+, the biggest shareholder in MultiChoice with a 36.6 per cent stake, confirmed a second mandatory offer of 125 South African Rand ($6.7) per share for the remaining shares. This is significantly above its initial offer of 105 South African Rand ($5.6) per share on February 1.

"Following constructive engagement with MultiChoice, we are pleased to have issued a joint firm intention announcement to make an offer today, representing a significant premium for the shareholders of MultiChoice," said Canal+ Group Chairman and CEO Maxime Saada.

"Canal+ is confident in making this offer, at a level that exceeds the minimum required by regulation. Due to the incredible future, we believe that Canal+ and MultiChoice can build together."

The deal would create a pan-African broadcasting powerhouse capable of bringing African content to global audiences and competing on an international scale.

MultiChoice, which was founded in the early 1980s with support from South African technology giant Naspers, has grown to serve 20 million subscribers across Africa.

Canal+ Group began accumulating a stake in MultiChoice in 2020, laying the groundwork for its current bid to acquire the company.

However, the acquisition is not yet a done deal, as Canal+ still needs to navigate South African rules limiting foreign ownership of local commercial broadcasters.

In a nod to concerns over ownership, the joint statement said that both partners recognised the importance of economic transformation and Broad-Based Black Economic Empowerment (BBBEE) in South Africa.

“Canal+ intends to support MultiChoice in its continued efforts to foster BBBEE initiatives and the transformation of its South African business as a commercial and societal imperative,” read the statement.

Canal+ has an extensive presence in French-speaking African countries, while MultiChoice has a stronger foothold in English-speaking nations, including South Africa, Nigeria, and Kenya, providing a complementary reach that would bolster the proposed media powerhouse.