ENUGU, Nigeria (VOICE OF NAIJA)- Canal+, a prominent French company, has extended an enticing offer to acquire the South African pay-TV giant, MultiChoice, for approximately R31.7bn ($1.7bn).
The Paris-based firm in a statement on Thursday, formally announced its non-binding indicative offer to MultiChoice’s board, aiming to secure all outstanding ordinary shares, pending regulatory approvals.
As of its latest annual report, MultiChoice disclosed Canal+’s ownership of 140,160,277 out of its 442,512,678 issued shares.
Reports suggest that Canal+ strategically amassed over 30 per cent of the company’s shares over the past four years through open market purchases.
Canal+ proposes a compelling R105 per ordinary share, presenting a 40 per cent premium over MultiChoice’s closing share price of R75 on January 31.
The potential acquisition, valuing at close to R31.75bn ($1.7bn), is envisioned by Canal+ to elevate MultiChoice into a global-scale media entity.
Maxime Saada, Chairman and CEO of Canal+, emphasized the importance of scale and local-global expertise for MultiChoice’s continued success in Africa.
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He stated, “Our potential offer, if successful, would be an important next step for MultiChoice to realize its full potential.”
Canal+ also revealed its intention to list in response to Vivendi’s plans to divide into four entities.
The ultimate goal is to obtain a listing in South Africa, creating an African media business with enhanced scale, better serving consumers with a comprehensive content offering.
In a comprehensive statement, Canal+ stressed the increasing globalization and competitiveness of the media industry.
It emphasized that the proposed combination with MultiChoice would not only secure a long-term path for MultiChoice but also position it as a thriving player in the evolving global market.
The media industry landscape is evolving rapidly, and Canal+ believes that scale is paramount for survival and growth.
“This will allow investors to benefit from the combination of Canal+ and MultiChoice, our ultimate goal being to also obtain a listing in South Africa,” it stated.
“It is the ambition of Canal+ to 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 terms.
“However, the media industry in which MultiChoice is operating is becoming increasingly globalised and competitive, with regional media companies having to compete with the firepower of global media titans, with enormous resources to invest in content, marketing and technology,” part of the statement read.
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The potential combination aims to create a group with significant scale, ensuring MultiChoice’s status as a pre-eminent media company in Africa.
“A combination between Canal+ and MultiChoice would create a group with significant scale, putting MultiChoice on a secure long-term path and enabling the company to thrive.
“Should this combination not proceed, this lack of scale is likely to become a more acute problem in the coming years, risking the company’s status as the pre-eminent media company in Africa and impacting its mid-term trajectory,” the firm said.
In November, MultiChoice Group reported a remarkable 69 per cent growth in its user base over the last six months by executing well on its operational objectives during the same period.
Canal+’s proposal marks a strategic move to capitalize on this growth and navigate the dynamic landscape of the media industry.
Canal+ is a French premium television channel launched in 1984. It is 100 per cent owned by the Groupe Canal+, which in turn is owned by Vivendi.