Canal+ Proposes $2.5 Billion to Acquire MultiChoice

It has been reported that Canal+, a French company, has proposed plans to acquire MultiChoice for around $2.5bn.

This was revealed on Thursday in a statement by Canal+, which is based in Paris. The company submitted a non-binding indicative offer to MultiChoice's board to acquire all ordinary shares it does not own, subject to the necessary regulatory approvals.

In its last annual report, MultiChoice announced that Canal+ owned 140,160,277 of its 442,512,678 issued shares.

Reports from local media reveal that Canal+ has been actively buying MultiChoice shares on the open market for the past four years, leading to the company holding over 30% of the company-issued shares.

For each share, Canal+ offered R105 per share, which represented a premium of 40% to MultiChoice's closing share price of R75 on January 31. Buying out the remainder would cost Canal+ close to $2.5bn, as reported by the PUNCH.

Canal+ said that if MultiChoice is successfully acquired, the firm will work tirelessly to turn the South African pay-TV giant into a global-scale media company.

Concerning the proposed plans to buy MultiChoice, Maxime Saada said in the statement, 

• For MultiChoice to continue to thrive in Africa, it will require a strategy that enhances its scale and strengthens local and global expertise.

• Our potential offer is an essential next step for MultiChoice to realise its full potential.

• This will allow investors to benefit from the combination of Canal+ and MultiChoice, with our ultimate goal being to obtain a listing in South Africa.

• It is the ambition of Canal+ to create an African media business with enhanced scale that can thrive in a competitive international market, better serve its consumers with a world-leading offering of sports and local and global content, and ensure that Africa can tell her story to a worldwide audience on her terms.

• However, the media industry in which MultiChoice operates 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.

• A combination of Canal+ and MultiChoice would create a group with significant scale, putting MultiChoice on a secure long-term path and enabling the company to thrive.

• This will allow investors to benefit from the combination of Canal+ and MultiChoice, with our ultimate goal being to obtain a listing in South Africa.

• It is the ambition of Canal+ to create an African media business with enhanced scale that can thrive in a competitive international market, better serve its consumers with a world-leading offering of sports and local and global content, and ensure that Africa can tell her story to a worldwide audience on her terms.

• However, the media industry in which MultiChoice operates 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.

• A combination of Canal+ and MultiChoice would create a group with significant scale, putting MultiChoice on a secure long-term path and enabling the company to thrive.

About Canal+

Canal+ is a French premium television channel launched in 1984. It is 100% owned by Groupe Canal+, which Vivendi owns. The channel broadcasts several kinds of programming, mostly encrypted. Unencrypted programming can be viewed freely on Canal+ and satellite on Canal+ Clair.