French media giant Canal+ increases its stake in South African pay-TV company MultiChoice to 40%, advancing its bid to acquire the company. Canal+ initially offered $2.9 billion to purchase MultiChoice’s ordinary shares, with plans pending regulatory approval.
Canal+ Increases Stake in MultiChoice to 40% Amid Acquisition Progress
Previously holding 35% of MultiChoice’s shares, Canal+ now commands a 40% stake, as confirmed by MultiChoice following regulatory requirements. The company notified shareholders and regulatory bodies of Canal+’s increased interest in compliance with relevant statutes.
Analysts speculate that if the acquisition proceeds, Canal+ will secure an overwhelming 90% share of the African pay-TV market.
MultiChoice, a leading entertainment platform in Africa, operates across 50 sub-Saharan African markets, boasting nearly 40 years of industry experience and serving over 23.5 million households.
Amidst acquisition discussions, MultiChoice extended the tenure of its chairman, Imtiaz Patel, until the completion of the pending merger. The company believes continuity offers strategic advantages during this period of transition.
MultiChoice Deemed Undervalued
Initially, Canal+ proposed a bid of $5.6 (R105) per share, which MultiChoice deemed undervalued, prompting a rejection and a request for an improved offer.
Following regulatory directives, Canal+ increased the bid to $6.7 (R125) per share, signaling continued collaboration between the two entities towards finalizing the deal.
The trajectory of the acquisition underscores the evolving landscape of the African pay-TV market and the strategic positioning of industry players like MultiChoice and Canal+ in the region.
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