Canal+ Initiates Bid to Acquire MultiChoice, Africa's Largest Pay-TV Company
Canal+, the French pay-TV giant under Vivendi SE ownership, has reportedly made a non-binding offer to acquire MultiChoice, Africa's largest pay-TV company, marking a significant move four years after acquiring a 6.5% stake in the company. The offer, valued at 105 Rands per share according to Bloomberg, represents a substantial premium over MultiChoice's current share price of 79 Rands.
Canal+ has steadily intensified its focus on the African market over the past decade, witnessing substantial growth from 1 million African subscribers in 2016 to 7.6 million in 2023. The acquisition of ROK Studios, a prominent Nigerian film production company, in July 2019 further bolstered Canal+'s portfolio of original content offerings.
The potential acquisition of MultiChoice aligns with Vivendi's African ambitions, marking a significant step if the deal materializes. Vivendi, known for its history of hostile takeovers, has previously employed similar tactics in the gaming industry, acquiring minority stakes in companies like Gameloft and Ubisoft before eventually securing controlling interests.
Canal+ has gradually increased its stake in MultiChoice since 2020, reaching around 32.6%. However, regulatory challenges loom on the horizon. South African law mandates a mandatory takeover offer when Canal+'s shareholding reaches 35%. Yet, a complete takeover faces hurdles as foreign companies like Canal+ are restricted to a maximum of 20% of voting rights on the board of directors of a South African broadcaster. MultiChoice enforces this limitation through a voting rights cap, making a full takeover seemingly improbable in the near future, as indicated by a Bloomberg intelligence analyst in February 2023.