Canal+ is currently the largest shareholder in MultiChoice with a 31.67% stake.
Vivendi-owned Canal+ Group has proposed to increase its minority stake in the MultiChoice Group, positioning itself for complete ownership of the African broadcasting giant.
Currently holding a 31.7% stake in the South African-headquartered company, Canal+ Group’s bid to the board of directors of MultiChoice is a non-binding and indicative offer, signalling its intent to acquire all issued ordinary shares not currently under its ownership. 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.
Reports from Reuters indicated that Canal+ has tabled an offer of SAR105 ($5.65) per ordinary share, valuing them at SAR75 as of January 31. The potential deal, estimated at around $1.7bn, is contingent on regulatory approvals. MultiChoice confirmed receipt of a letter of intent from Canal+ Group and committed to updating shareholders on any developments.
During the six months ending September 30 last year, the MultiChoice Group experienced a 1% decrease in revenue, reaching SAR28.3bn. The decline was attributed to challenges such as the South African energy crisis, cost of living pressures, and sharp depreciation of local currencies against the dollar.
MultiChoice recently collaborated with Comcast’s NBCUniversal and Sky to revamp Showmax, introducing a refreshed brand and an updated content lineup featuring English Premier League football, local originals, and US series.
Vivendi, the parent company of Canal+ Group, is exploring the possibility of splitting itself into multiple entities, each listed on the stock market, including Canal+ Group and Lagardère.
Maxime Saada, Chair and CEO of Canal+, emphasised the significance of the potential offer and said: “For MultiChoice to continue to thrive in Africa, it will require a strategy that enhances its scale as well as strengthened local and global expertise. Our potential offer, if successful, would be an important next step for MultiChoice to realise its full potential.”
