Canal+, a France-based pay-TV broadcaster owned by Vivendi Group, has made offer to take acquire 100 percent of South Africa’s MultiChoice Group, the owner of DStv, GOtv, SuperSport and Showmax.
The firm’s issued non-binding, indicative offer for MultiChoice for ZAR105 ($5.62) per ordinary share expecting further engagements with MultiChoice Group for a cash consideration for the remaining shares.
Canal+ owns 31.7% in MultiChoice after it first bought a stake in MultiChoice in 2020, and upped its stake in July 2023 and this acquisition offer, if approved by regulators, will see Canal + create an African media business with enhanced scale, which can thrive in a competitive international market, better serve its consumers with a world leading offering of sports, local and global content, and ensure that Africa can tell her story to a global audience on her own terms.
Through its investment in MultiChoice, Canal + will run the continent’s biggest media businesses with cable TV service DStv and GOtv, sports streaming channels SuperSport and Netflix competitor Showmax. Canal + has deep experience in producing and distributing local content and sports coverage and sees this as vitally important for its business model and the future success of media businesses in Africa and beyond.
Canal+ also owns stake in iROKOtv and the combination will give it the biggest local content catalogue across Africa.
Mouime Saada, Chairman and CEO of CANAL+ Group said:”Canal + is a long-term investor in bolt MultiChoice and South Africa, and is proud to have been actively involved in Africa’s media sector for 30 years. for MultiChoice to continue to thrive in Africa if will require a strategy Idol enhances ifs scale as well as strengthened local and global expertise.”
However, South Africa limits foreign ownership of commercial South African broadcasters to 20% and though there are plans to increase to 49%, Canal+ might have a long way to acquire MultiChoice even though it’s splitting from parent group Vivendi to list on its own which might also see it list in South Africa.
The Canal+ Group, which started investing in MultiChoice in 2020, aims to create “a large-scale African media company capable of thriving in an increasingly competitive international market.” Canal+ Group reaches a subscriber base of over 25 million in nearly 50 countries. It recently acquired M7 and SPI, and taken strategic stakes in businesses such as MultiChoice, Viu and Viaplay, with plans to further consolidate on a global scale.
Canal+ CEO Maxime Saada concluded, “Our Potential Offer, if successful, would be an important next step for MultiChoice to realise its full potential. Combined with Canal +, MultiChoice would have he resources to investing scale, local African talent and stories, and best in class technology, to allow if to grow in Africa and compete with the global streaming media giants. We are steadfast in our belief Idol MuttiChoice could enjoy a bright future as part of a combined group with Canal+.”