Canal+ Group, a prominent French TV channel, has expressed its interest in acquiring all shares of South Africa’s MultiChoice for $1.69 billion. As the largest shareholder in MultiChoice with a 31.67 percent stake, Canal+ has formally presented a non-binding and indicative proposal, offering to pay 105 rand in cash per share. This proposed amount represents a significant 40 percent premium over MultiChoice’s closing share price on the previous Wednesday, as reported by Reuters.
Canal+ Group is set to proceed with due diligence, and upon its completion, the company plans to deliver a letter of firm intention to the board of MultiChoice. This strategic move signifies Canal+ Group’s aim to strengthen its position and influence in the media landscape through the potential acquisition of MultiChoice.
“MultiChoice to continue to thrive in Africa will require a strategy that enhances its scale as well as strengthened local and global expertise,” Maxime Saada, chairman and chief executive officer (CEO) of Canal Plus, said in a statement.
“Our potential offer, if successful, would be an important next step for MultiChoice to realise its full potential.”
Confirming the development, MultiChoice, which operates in 50 countries in sub-Saharan Africa, said it had received a letter from the French media company and would update shareholders on any developments.
Canal+ is a subsidiary of Vivendi SE, a French mass media holding company headquartered in Paris.