The combined company will have a presence in both the French and English-speaking markets.
Canal+ Group and MultiChoice have reached an agreement on the terms of the French pay-TV giant’s proposed mandatory offer to acquire 100% control of the South African company, with MultiChoice shareholders set to receive ZAR125 per ordinary share.
The deal, which comes after Canal+ Group’s initial offer of ZAR105 ($5.6) per share on February 1, represents a significant increase and is now valued at ZAR125 per share. Canal+ Group, currently holding a 36.6% stake in MultiChoice, has officially confirmed its intention to acquire the remaining shares.
The mandatory offer was prompted by Canal+’s increased holding in MultiChoice, surpassing the 35% threshold. Both companies have entered a cooperation agreement regarding the offer, with Canal+ Group affirming that it will finance the acquisition using its own funds without the need for borrowing.
The proposed deal offers a substantial premium of 66.66% to MultiChoice shareholders based on the closing price of ZAR75 per share on January 31, 2024, the day before Canal+’s initial non-binding indicative offer.
Maxime Saada, Chairman and CEO of Canal+ Group, expressed confidence in the offer, emphasising the potential for growth and collaboration between Canal+ and MultiChoice. However, the acquisition is subject to regulatory approval and compliance with South African rules limiting foreign ownership of local commercial broadcasters.
In acknowledgement of concerns regarding ownership, both companies emphasised their commitment to economic transformation and Broad-Based Black Economic Empowerment (BBBEE) initiatives in South Africa. Canal+ Group pledged to support MultiChoice in its efforts to promote BBBEE and foster transformation within its South African operations.
While the announcement marks a significant step forward, the acquisition process is ongoing, and Canal+ Group will need to navigate regulatory requirements and address concerns before finalising the deal.
