Multichoice has rebuffed an initial bid from Canal+, but the addition of South Africa’s wealthiest Black individual to the equation could potentially aid the French media conglomerate in meeting the country’s stringent Black ownership criteria, as reported by Bloomberg.
Representatives for both Canal+ and Motsepe’s investment firm, African Rainbow Capital, have declined to offer comments. However, insiders have emphasized that discussions are still in their preliminary phases, and there is no guarantee of a finalized deal.
With a stake surpassing 35% in MultiChoice, South Africa’s largest pay-TV company, Canal+ has triggered a mandatory takeover bid.
If the French broadcaster successfully navigates South Africa’s regulations on foreign media ownership, it could gain broader access to African markets, which are home to the world’s fastest-growing and youngest population.
Canal+ is expected to present a formal offer for MultiChoice at 125 rand per share, valuing the company at approximately 55 billion rand ($2.9 billion), before April 8, for consideration by the board’s independent members, according to sources.
Africa’s streaming dominance Established in South Africa in 1985, MultiChoice expanded its operations across Africa in the early 1990s, offering packages that include live English football matches and local shows. The company was separated from Naspers Ltd. in 2019. It also owns Showmax, a popular video-streaming service and competitor to Netflix Inc.
Multichoice, servicing 50 countries in Africa, has been vigorous in fending off competition from multinational rivals like Netflix and Amazon, as evidenced by its substantial investment in local content.
The CEO and Chairman of Canal+ remarked that this acquisition would provide Multichoice with the resources to bolster its investment in local content.
Vivendi aims to merge its local Canal+ operations with MultiChoice, forming a group with nearly 50 million subscribers and increased resources for investing in local content and sports.
