Canal+ Makes a ‘Fair and Reasonable’ Bid for DStv

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.

Canal+ Bid DStv Fair and Reasonable

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. 

Canal+ bid DStv Faces Challenges 

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.”