The Canal+ group confirms that it has submitted a non-binding indicative offer to the MultiChoice board of directors.
- The potential merger would transform MultiChoice into a global media company.
- South Africa's creative economy sector would be supported by a local champion with global reach.
- Canal+ is reportedly offering an improved deal for consumers across Africa. Canal+ plans to make an offer of ZAR 105 per ordinary share of MultiChoice, representing a premium of 40% over the closing price on January 31, 2024.
The Canal+ Group confirms that it has submitted a letter to the MultiChoice board of directors containing a non-binding indicative offer to acquire all of the issued ordinary shares of MultiChoice that it does not already own, subject to obtaining the necessary regulatory approvals.
Subject to confirmations expected by Canal+ in further discussions with MultiChoice, Canal+ plans to make an offer for ZAR 105.00 per MultiChoice ordinary share, paid in cash. This would represent a premium of 40.0% over MultiChoice's closing share price of ZAR 75.00 on January 31, 2024.
Following a confirmatory audit, Canal+ intends to submit a firm offer letter to the independent committee of MultiChoice's board of directors.
Neither the development of such a potential offer nor the terms of any resulting transaction are certain.
Canal+ observes and complies with all laws and regulations relating to the South African media sector and companies listed on the Johannesburg Stock Exchange. Any binding offer letter submitted to the independent committee of the board of directors would necessarily take this into account.
Canal+ is actively preparing for its stock market listing following the announcement of the planned spin-off of its parent company Vivendi. This project would allow investors to benefit from the merger of Canal+ and MultiChoice, with the ultimate goal of the Canal+ Group being to also obtain a listing in South Africa.
The creation of a leading global media company with Africa at the heart of its strategy
Over the past three years, Canal+ Group has increased its stake in MCG to become its largest shareholder.
Canal+ aims to create a major African media company capable of
(1) to thrive in an increasingly competitive international market,
(2) to offer its audience an increasingly attractive and rich selection of local and global sports content, and
(3) to enable the African continent to reach out to an international audience.
MultiChoice operates in an increasingly globalized and competitive industry. Regional media groups must therefore compete with powerful global groups with considerable resources. In such an environment, a company can only survive and thrive through a strategy of scaling up.
Bringing Canal+ and MultiChoice together would create a group of significant global scale and enable MultiChoice to prosper in the long term. Investments in local content and sports would be more substantial, and the two groups could invest in a common, proprietary technology platform across a broader geographic footprint.
The Canal+ Group is committed to increasing investment in South Africa
The Group strongly believes in the wealth of creative industries in South Africa and is committed to increasing its involvement in this sector. It also appreciates MultiChoice's unique position in the markets where it operates and the important role it has played in the development of the South African and African media landscape over the past four decades.
Through its investment in MultiChoice, Canal+ aims to support the creative economy in South Africa and is keen to see it accelerate its momentum and prosper in the long term. The group hopes to share its extensive expertise in the production and distribution of local content and sports event coverage with media groups in South Africa and other territories.
The Canal+ Group's presence on the African continent for more than 30 years is testament to its commitment and attachment to Africa. It has always ensured that its presence is respectful of the immense diversity of cultures that coexist in the various markets where it operates.
He is committed to supporting MultiChoice's virtuous BBBEE policy and fully recognizes the key role played by Phuthuma Nathi in this regard.
Maxime Saada, Chairman of the Canal+ Group Management Board, said: "Canal+ is a long-term investor in MultiChoice and South Africa, and is proud to have been actively involved in the media sector in Africa for 30 years. To accelerate MultiChoice's development in Africa and beyond, it will need a strategy that enables it to grow in size and strengthen its local and global footprint. Our potential offer, if successful, will be an important step in enabling MultiChoice to realize its full potential. Combined with Canal+, MultiChoice would have the resources to grow and invest in local African talent and stories, and would have the necessary proprietary technology resources.
We are convinced that bringing our two groups together would enable the new entity to address the structural challenges facing the media sector, develop authentic and ambitious African content, support more local production companies, and expand access to sports for its subscribers while investing in local sports.
Press release