Canal+ says a merger with MultiChoice would turn the African pay-TV business into a global media company.
It’s tabled a €2.5 billion bid for the company and its DStv and Supersport brands.
Canal+ plans to offer ZAR 105 per ordinary share of MultiChoice, representing a premium of 40% on the closing price at the end of trading on Wednesday. Its written to the MultiChoice board of directors with a view to purchasing the remaining shares that it doesn’t already hold, subject to regulatory approval.
In the next few months Canal will be split from its parent company Vivendi as part of a planned break-up of the French media giant. A listing for the combined Canal+/MultiChoice would also be sought in South Africa.
“Bringing Canal+ and MultiChoice together would make it possible to create a group of significant size on a global scale, and for MultiChoice to prosper in the long term. Investments in local content and in sport would be more substantial, the two groups could invest in a common and proprietary technological platform, over a wider geographical footprint,” the company said in a statement.
Over the past three years, the Canal+ Group has increased its stake in MultiChoice to become its largest shareholder.
It plans to create a large-scale African media company capable of thriving in an increasingly competitive international market, offering the audience a richer offering of content, sports, local and global, and allowing the African continent to shine before an international audience. Canal says it wants to support the creative economy in South Africa and share its expertise with other companies.
A version of Canal+ has been available in French speaking Africa for 30 years.
