French media giant, Vivendi’s Canal+, has formally offered $2.9 billion to acquire African media giant, MultiChoice, owners of DStv and GOtv.
According to Reuters, the company made the offer on Monday, in an effort to expand its reach in Africa’s growing media market.
Canal+ proposed to buy shares at $6.7 each, pending approval from MultiChoice’s independent board.
Accordingly, the deal could give Canal+ a significant boost in Africa, home to the world’s fastest-growing and youngest population.
Although talks are still early, South African billionaire Patrice Motsepe might join Canal+ to facilitate the deal.
Canal+ began investing in MultiChoice in 2020 and now holds a 35 per cent stake, triggering the takeover offer.
“A combined group would be better positioned to address key structural challenges and opportunities resulting from the progressive digitalisation and globalisation of the media and entertainment sector,” the companies said.
MultiChoice has a more substantial presence in English-speaking countries, including South Africa, Nigeria, and Kenya.
Meanwhile, MultiChoice reportedly told investors on Monday that it has agreed to work closely with Canal+ on a mandatory offer the latter must make to the former’s shareholders. This is after Canal+ triggered a mandatory offer under South African rules by acquiring more than 35% of MultiChoice’s equity earlier this year.
The “cooperation agreement” will see the two broadcasting giants using “reasonable endeavours to cooperate in relation to the offer, including in relation to the fulfilment of the offer conditions and the publication of a combined offer circular”, MultiChoice said.
Canal+ has also continued to buy up MultiChoice shares in the open market, with its stake now standing at 36.6%.
