Vivendi SE’s Canal+ set to acquire MultiChoice
By Ralph Tathagata
In a deal valued at 46 billion rand ($2.5 billion), Vivendi SE’s Canal+ has proposed to acquire the remaining shares of MultiChoice Group, the South African pay-TV company.
The Paris-based Canal+ already holds a significant 31.7% stake in MultiChoice, representing a 40% premium to the company’s recent closing price.
The company said its offer, worth R31.7 billion, was non-binding and indicative but that it expected to deliver a letter of firm intention to MultiChoice’s board once due diligence has been completed.
The acquisition aligns with Vivendi’s strategy to merge Canal+’s local operations with MultiChoice, creating a conglomerate with close to 50 million subscribers.
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.
MultiChoice was founded in South Africa in 1985, and expanded across Africa in the 1990s, offering packages featuring live English football matches and local content.
As the owner of Showmax, a streaming service competing with Netflix in the region, MultiChoice has tapped into Africa’s rapidly growing entertainment market. Canal+’s bid reflects the company’s aim to capitalize on this trend, strengthening the new group’s position in local content and sports.