A prominent French TV channel, Canal+ Group has put forth a proposal to acquire all outstanding shares of MultiChoice for the sum of $1,690,000.
It was gathered that Canal+ officially announced this move on Thursday, February 1, revealing that it had already submitted the proposal.
As a top shareholder in MultiChoice, holding a notable 31.67 percent stake, the French firm outlined its intention to pay 105 rand per share in cash, representing 40 percent compared to MultiChoice’s closing share price on Wednesday, January 31.
Meanwhile, the French media company, operating under the umbrella of Vivendi SE, valued its non-binding and indicative offer at 31,700,000 rand.
While the offer is non-binding, Canal+ is expected to follow up with a firm intention letter to MultiChoice’s board upon the completion of due diligence.
In a statement, Maxime Saada, the Chairman and CEO of Canal+, emphasized that for MultiChoice to thrive in the African market, a strategy enhancing scale and bolstering local and global expertise is crucial.
Saada expressed optimism, stating, “Our potential offer, if successful, would be an important next step for MultiChoice to realize its full potential.”
In response to this development, MultiChoice, a key player operating in 50 sub-Saharan African countries, confirmed receipt of the letter from Canal+ and pledged to keep shareholders informed about any ensuing developments.
The proposed acquisition by Canal+ appears to be a strategic move, positioning MultiChoice for further growth and success in the African media landscape.
However, as the companies navigate through the due diligence process, the outcome of this potential acquisition is closely watched within the business and media sectors.
