French media giant Canal+ has submitted an offer to acquire Multichoice in South Africa.<\/p>\n\n\n\n
In a statement released on Thursday (01 February), Canal+ has confirmed that it submitted a letter to the Board of Directors of MultiChoice. <\/p>\n\n\n\n
The letter contained a non-binding indicative offer to acquire all of the issued ordinary shares of MultiChoice that Canal+ does not already own. <\/p>\n\n\n\n
However, this offer is subject to obtaining the necessary regulatory approvals.<\/p>\n\n\n\n
Subject to certain confirmations that Canal+ expects following further engagements with MultiChoice, Canal+ anticipates its offer to be for a cash consideration of R105 per MultiChoice ordinary share, which would represent a premium of 40% to MultiChoice\u2019s closing share price of R75 on 31 January 2024, noted media house. <\/p>\n\n\n\n
For three years, Canal+ has been a supportive major shareholder in MultiChoice, having grown its investment to become the company\u2019s largest shareholder.<\/p>\n\n\n\n
“For MultiChoice to continue to thrive in Africa, it will require a strategy that enhances its scale as well as strengthens local and global expertise,” said Chairman and CEO of Canal+ Maxime Saada.<\/p>\n\n\n\n
“Our Potential Offer, if successful, would be an important next step for MultiChoice to realise its full potential.<\/p>\n\n\n\n
“Combined with Canal+, MultiChoice would have the resources to invest in scale, local African talent and stories, and best-in-class technology to allow it to grow in Africa and compete with the global streaming media giants.<\/p>\n\n\n\n
“We are steadfast in our belief that MultiChoice could enjoy a bright future as part of a combined group with Canal+,” he added.<\/p>\n\n\n\n
Canal+ noted that upon the satisfactory completion of a confirmatory due diligence, Canal+ intends to deliver a firm intention letter to the Independent Board.<\/p>\n\n\n\n
“At this stage, there can be no certainty about the progression of the Potential Offer, nor the terms of any transaction that may occur,” it said.<\/p>\n\n\n\n
“Canal+ is respectful and observant of all laws and regulations relating to the South African media sector and companies listed on the Johannesburg Stock Exchange.<\/p>\n\n\n\n
“Any firm intention letter submitted would be mindful of the obligations that Canal+ would have in this regard,” it added.<\/p>\n\n\n\n
Canal+ is actively preparing its listing following the unbundling announcement of its parent company, Vivendi.<\/p>\n\n\n\n
This will allow investors to benefit from the combination of Canal+ and MultiChoice. Our ultimate goal is to obtain a listing in South Africa, the media house said. <\/p>\n\n\n\n