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MultiChoice’s independent board termed France’s Canal+ bid for the shares it does not own in South Africa’s MultiChoice as “fair and reasonable”. Canal+, which is a part of French media group Vivendi, made a firm offer of 125 rand in cash per MultiChoice share in April.
The total offer is about 35 billion rand ($1.88 billion), which valued the company at about 55 billion rand. The offer is expected to close by April 2025.
Maxime Saada, chairman and CEO of CANAL+, stated the amount offered on a media call. He said, “CANAL+ had already invested close to 1.2 billion euros in buying a 45.2% stake in MultiChoice.”
Also Read: MultiChoice and Canal+ Enter into a Cooperation Agreement for a Buyout Deal
Both parties are in the process of evaluating and concluding a suitable structure for the licensed activities of MultiChoice Group. It is to ensure compliance with the relevant restrictions on foreign control in executing the offer.
With the takeover now likely, Canal+ is left with the problem that South African regulations prevent foreign entities from exercising voting rights above a 20% threshold on holders of commercial broadcast licenses.
These might be strenuous but the French company will likely overcome that obstacle.
Saada said, “I don’t see the Black economic empowerment as a hurdle. The foreign ownership is a hurdle. I would rather the takeover happen fast. Not because I’m impatient, but because the competition doesn’t wait.”