The joint announcement issued by the two companies puts the value of Multichoice at around $3bn.
Canal+ and MultiChoice have issued a joint statement confirming the African pay-TV operator’s acceptance of a takeover offer by the Vivendi unit.
Canal+ has made a mandatory offer to acquire the remaining MultiChoice shares at R125.00 per share in a deal that would value the South African pay-TV operator at about ZAR55bn ($3bn).
The companies have also released a Combined Circular, including a report by Independent Experts Standard Bank, declaring the offer “fair and reasonable.” The MultiChoice Board, after reviewing the valuations in the report, concurred that the terms and conditions of the offer are “fair and reasonable to MultiChoice shareholders.”
Maxime Saada, Chairman and CEO of Canal+ Group, expressed his enthusiasm: “By combining the scale, complementary geographies, and content portfolios of our two companies, we will create an entertainment group with international reach and strong local roots. Our aspiration is to provide viewers across the continent with a local champion that can both challenge and partner with the largest media companies in the world, serving powerful local stories and compelling sport, while investing in the local creative and sporting ecosystems to ensure their long-term success.”
Elias Masilela, Chairman of MultiChoice Group, added: “The offer from Canal+ is an endorsement of MultiChoice’s 40-year track record and our compelling continental growth strategy. It is gratifying to note that foreign investors share our view that South Africa and Africa remain attractive growth markets. While we are currently successfully delivering on our mandate and strategy, Canal+’s offer provides the opportunity to accelerate these plans and form a global entertainment business with Africa at its heart, increasing value for shareholders in the process.”
The combined company will have a significant presence in both French and English-speaking markets. While Canal+ naturally dominates French-speaking African nations, MultiChoice holds a stronger presence in English-speaking countries, including South Africa, Nigeria, and Kenya.
