Canal Plus (Canal+), a French premium television channel Groupe Canal+, has reportedly made an offer to buy all the shares it does not own in South Africa’s MultiChoice Group, a deal which would be worth $2.5 billion.
Details
Canal Plus, the top shareholder in MultiChoice with a 31.67% stake stated that it would likely pay 105 rand in cash per share, a 40% premium to MultiChoice’s closing share price on Wednesday.
MultiChoice, which operates in 50 countries in sub-Saharan Africa, said it has received a letter from the French media company and would update shareholders should there be any further developments.
Digging Deeper
Shares in MultiChoice surged more in Thursday morning trade but were still far below the offer price indicating a lack of investor confidence that the deal would go through.
What They’re Saying
“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. Our potential offer, if successful, would be an important next step for MultiChoice to realise its full potential,” Maxime Saada, chairman, and CEO of Canal Plus, said in a statement.
Saada added that the deal would give MultiChoice the resources to invest in scale, local African talent, and stories.
Source: Reuters
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