Canal+ is currently the largest shareholder in MultiChoice with a 31.67% stake.
South African pay-TV broadcaster MultiChoice has turned down a takeover bid from Canal+, the Vivendi-owned pay-TV provider. The Board of MultiChoice has announced its decision, stating that the €2.5bn offer from Canal+ significantly undervalues the company.
Canal+, which currently holds a 31.7% stake in the company, had submitted a non-binding purchase bid. Despite Canal+’s ambitions of turning the African pay-TV business into a global media company through a merger, MultiChoice expressed its dissatisfaction with the valuation, emphasising that the offer did not reflect the true value of its business.
With a market capitalization of $2.15bn, MultiChoice operates in 50 markets across sub-Saharan Africa, managing various channels and entertainment platforms, including M-Net, DStv satellite offerings, and the Showmax streaming service. The rejection of Canal+’s bid comes after MultiChoice conducted its own valuation exercise, which concluded that the proposed offer did not account for potential synergies arising from the envisaged transaction.
In a statement given to the Johannesburg Stock Exchange, MultiChoice said: “MultiChoice’s valuation excludes any potential synergies which may arise from the envisaged transaction. In this regard Canal+ has, following the lengthy discussions between the parties, repeatedly conveyed to the public what it sees as the advantages of the combined entity and therefore seemingly takes the view that there are significant synergies.”
The rejection of Canal+’s bid raises questions about the future direction of MultiChoice and its strategic partnerships within the ever-evolving media and entertainment landscape.