Canal+ and MultiChoice have confirmed the acceptance of a takeover offer by the Vivendi unit. Canal+ made a mandatory offer to acquire the remaining MultiChoice shares at R125.00 per share, valuing the South African pay-TV operator at approximately ZAR55bn ($3bn).
The companies released a Combined Circular, including a report by Independent Experts Standard Bank, declaring the offer "fair and reasonable." The MultiChoice Board, after reviewing the report's valuations, agreed that the offer's terms and conditions are "fair and reasonable to MultiChoice shareholders."
Maxime Saada, Chairman and CEO of Canal+ Group, expressed enthusiasm: "Combining our scale, geographies, and content portfolios will create an entertainment group with international reach and strong local roots. Our goal 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, delivering local stories and compelling sport, while investing in local creative and sporting ecosystems for long-term success."
Elias Masilela, Chairman of MultiChoice Group, added: "The offer from Canal+ endorses MultiChoice’s 40-year track record and our compelling continental growth strategy. It is gratifying to note that foreign investors view South Africa and Africa as attractive growth markets. While we are successfully delivering on our mandate and strategy, Canal+’s offer allows us to accelerate these plans and form a global entertainment business with Africa at its heart, increasing value for shareholders."
The combined company will have a significant presence in both French and English-speaking markets. Canal+ dominates French-speaking African nations, while MultiChoice holds a stronger presence in English-speaking countries, including South Africa, Nigeria, and Kenya.
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