In the latest big M&A deal in the media industry, French broadcaster Canal Plus has submitted a bid to own South Africa’s Multichoice outright.
Canal Plus is currently the largest shareholder in MultiChoice with a 31.67 per cent stake. It has submitted a bid of $1.7 billion to acquire the rest of the company according to Reuters.
The company added that the bid is non-binding and once due diligence is completed, it intends to deliver a letter of firm intention to MultiChoice’s board.
“For MultiChoice to continue to thrive in Africa it will require a strategy that enhances its scale as well as strengthened local and global expertise,” said Maxime Saada, chairman and CEO of Canal Plus. “Our potential offer, if successful, would be an important next step for MultiChoice to realise its full potential.”
The news comes a day after Canal Plus’ parent company Vivendi revealed its own plan to split into three companies, including Canal Plus, which would be listed on the French stock exchange.
The start of 2024 has seen a boom in merger and acquisition activity, with Paramount Global, the parent company of UK broadcaster Channel 5, the subject of a $30 billion takeover bid from Allen Media Group (AMG).
