Canal+ and MultiChoice have issued a joint statement indicating the African pay-TV operator’s acceptance of a takeover by the Vivendi unit.
Canal has a mandatory offer to acquire the MultiChoice shares it does not own at R125.00 per share.
The companies have also published a Combined Circular that includes a report by Independent Experts Standard Bank, which declares the offer to be “fair and reasonable”
The MultiChoice Board has reviewed the valuations prepared in the report and concluded that the terms and conditions of the offer are “fair and reasonable to MultiChoice shareholders”.
Maxime Saada, Chairman and CEO, Canal+ Group said: “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 and which can serve powerful local stories and compelling sport, whilst investing in the local creative and sporting ecosystems to ensure their long-term success.”
Elias Masilela, Chairman, 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 presence in both the French and English-speaking markets. While Canal naturally has a hold over French-speaking African nations, MultiChoice has a stronger presence in English-speaking countries, including South Africa, Nigeria and Kenya.
