Canal+ is set to begin the process of acquiring South African media company Multichoice after months of speculation. Canal+ first began buying shares in MultiChoice in 2020 in a bid to grow its business in Africa. Today, the French company owns about 45.2% of Multichoice after investing €1.2 billion ($1.3 billion) into the company. It aims to acquire the remaining shares to complete the acquisition.
Reports about Canal+'s interest in acquiring Multichoice surfaced in February, leading to official talks between the two companies in April. When the French company's shareholding value surpassed 35%, it was required by South Africa's Takeover Regulation Panel to make a mandatory offer. According to Bloomberg, the joint announcement values Multichoice at around $3 billion.
Speaking about the latest announcement, Maxime Saada, chairman and CEO of 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 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 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."
Founded in South Africa in 1985, MultiChoice expanded across Africa during the early 1990s and was later spun off from Naspers in 2019. According to experts, the acquisition could create a global entertainment business with Africa at its centre as Canal+ would combine its operations with MultiChoice to have nearly 50 million subscribers and increased resources for investing in local content and sports, benefiting shareholders.
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