Canal+’s Bid to Buy MultiChoice Meets Board Approval
Paris, France
– The boards of directors of Groupe Canal+ and MultiChoice Group have approved a proposed acquisition deal, setting the stage for Canal+ to expand its reach into Africa.
Details of the Transaction
Under the terms of the agreement, Canal+ will acquire a controlling stake in MultiChoice for an estimated $2.6 billion. The deal will be financed through a combination of cash and shares, with Canal+ becoming the majority shareholder. MultiChoice is a leading pay-TV provider in Africa, operating in over 50 countries and serving more than 14 million subscribers. The company offers a wide range of content including sports, entertainment, movies, and news. Canal+ is a subsidiary of Vivendi, one of the world’s largest media and telecommunications groups. It operates in over 20 countries across Europe, Africa, and Asia and has a strong presence in French-speaking markets.
Strategic Rationale
The acquisition of MultiChoice gives Canal+ a significant foothold in the rapidly growing African pay-TV market. It will allow the company to leverage its content and distribution capabilities to expand its offering and compete effectively with local and international rivals. For MultiChoice, the deal provides access to Canal+’s extensive content library and distribution network. It also strengthens the company’s position as a leading player in the African media landscape.
Board Approvals
The boards of directors of both Canal+ and MultiChoice have unanimously approved the transaction. The deal is still subject to regulatory approvals and other customary closing conditions.
Industry Reaction
The proposed acquisition has been met with mixed reactions from industry analysts. Some believe that it will create a formidable player in the African pay-TV market, while others express concern about potential antitrust issues.
Conclusion
The approval of the proposed acquisition of MultiChoice by Canal+ represents a significant milestone in the consolidation of the African pay-TV industry. The deal is expected to bring together two major players and create a regional powerhouse with a combined reach of over 23 million subscribers.
Canal+’s Bid to Buy MultiChoice Meets Board Approval
Date:
March 7, 2023
Source:
Bloomberg
Details:
* The board of directors of MultiChoice, Africa’s largest pay-TV operator, has approved Canal+’s revised offer to acquire the company. * Canal+, owned by French media giant Vivendi, has offered to pay 23.2 billion South African rand ($1.5 billion) for MultiChoice, a 22% premium over its closing share price on Friday. * The deal requires regulatory approval in various countries where MultiChoice operates. * If approved, the acquisition will create one of the largest pay-TV platforms in Africa, with over 21 million subscribers. * MultiChoice operates in 50 African countries, while Canal+ has a presence in 26 African countries.
Significance:
* The acquisition would significantly expand Canal+’s presence in Africa and provide it with a strong foothold in the English-speaking market. * It would allow Canal+ to leverage MultiChoice’s established distribution network and content partnerships. * The deal is seen as a major step in the consolidation of the African pay-TV industry. * It could also lead to increased competition in the streaming market, as Canal+ and MultiChoice both have their own streaming platforms.