Vivendi’s Canal Plus, the largest shareholder in South Africa’s MultiChoice Group (MCGJ.J) with a 31.67% stake, has made an offer to acquire all remaining shares in the company in a deal valued at approximately $1.7 billion. The move aims to bolster MultiChoice’s position in the competitive international market for pay TV services.
Under the proposed deal, Canal Plus plans to offer 105 rand per share in cash, representing a 40% premium to MultiChoice’s closing share price on the preceding Wednesday. Although MultiChoice’s shares surged following the announcement, they remained below the offer price, reflecting investor uncertainty about the deal’s certainty.
Canal Plus emphasized that its offer is non-binding and indicative at this stage. However, once due diligence is completed, the company intends to submit a formal letter of firm intention to MultiChoice’s board. MultiChoice confirmed receipt of the letter from Canal Plus and pledged to keep shareholders informed of any further developments.
Maxime Saada, Chairman and CEO of Canal Plus, highlighted the strategic importance of the potential acquisition for MultiChoice’s future growth in Africa. He emphasized the need for enhanced scale and expertise to navigate the evolving market landscape, which includes competition from international streaming giants like Netflix, Amazon, and Disney.
Saada emphasized that if the deal is successful, it would provide MultiChoice with the resources needed to invest in scaling up operations, supporting local African talent, and creating compelling content. MultiChoice has previously invested significantly to combat competition and strengthen its offerings, including partnering with Comcast’s NBCUniversal and Sky to enhance its Showmax streaming service.
Canal Plus also indicated its intention to pursue a listing, following proposals by parent company Vivendi to split into four entities. The company expressed interest in eventually listing in South Africa as part of its strategic plans.
Vivendi’s Canal Plus, the largest shareholder in South Africa’s MultiChoice Group (MCGJ.J) with a 31.67% stake, has made an offer to acquire all remaining shares in the company in a deal valued at approximately $1.7 billion. The move aims to bolster MultiChoice’s position in the competitive international market for pay TV services.
Under the proposed deal, Canal Plus plans to offer 105 rand per share in cash, representing a 40% premium to MultiChoice’s closing share price on the preceding Wednesday. Although MultiChoice’s shares surged following the announcement, they remained below the offer price, reflecting investor uncertainty about the deal’s certainty.
Canal Plus emphasized that its offer is non-binding and indicative at this stage. However, once due diligence is completed, the company intends to submit a formal letter of firm intention to MultiChoice’s board. MultiChoice confirmed receipt of the letter from Canal Plus and pledged to keep shareholders informed of any further developments.
Maxime Saada, Chairman and CEO of Canal Plus, highlighted the strategic importance of the potential acquisition for MultiChoice’s future growth in Africa. He emphasized the need for enhanced scale and expertise to navigate the evolving market landscape, which includes competition from international streaming giants like Netflix, Amazon, and Disney.
Saada emphasized that if the deal is successful, it would provide MultiChoice with the resources needed to invest in scaling up operations, supporting local African talent, and creating compelling content. MultiChoice has previously invested significantly to combat competition and strengthen its offerings, including partnering with Comcast’s NBCUniversal and Sky to enhance its Showmax streaming service.
Canal Plus also indicated its intention to pursue a listing, following proposals by parent company Vivendi to split into four entities. The company expressed interest in eventually listing in South Africa as part of its strategic plans.
(Conversion rate: $1 = 18.7137 rand)
