After months of speculation, Canal+ will begin the process of acquiring South African media company Multichoice tomorrow.
Canal+ is believed to currently own around 45.2 per cent of Multichoice, and is looking to acquire the remaining shares.
The joint announcement issued by the two companies puts the value of Multichoice at around $3 billion.
Reports that Canal+ was looking to acquire Multichoice first surfaced in February, with the bid referred to South Africa’s Takeover Regulation Panel. In April, the two sides entered into official talks.
Speaking about the latest announcement, Maxime Saada, chairman and CEO, Canal+ Group said: “By combining the scale, complementary geographies and content portfolios of our two companies we will create an entertainment group with international reach and strong local roots. Our aspiration is to provide viewers across the continent with a local champion that can both challenge and partner with the largest media companies in the world and which can serve powerful local stories and compelling sport, whilst investing in the local creative and sporting ecosystems to ensure their long-term success.”
Elias Masilela, chairman, MultiChoice Group, added: “The offer from Canal+ is an endorsement of MultiChoice’s 40-year track record and our compelling continental growth strategy. It is gratifying to note that foreign investors share our view that South Africa and Africa remain attractive growth markets.
“While we are currently successfully delivering on our mandate and strategy, Canal+’s offer provides the opportunity to accelerate these plans and form a global entertainment business with Africa at its heart, increasing value for shareholders in the process.”
