Canal+ tables $2.9bn bid for MultiChoice

French media and telecommunications giant Canal+ has made a mandatory offer to acquire MultiChoice in a deal valuing the South African entertainment company at around US$2.9bn.

Under the proposed deal, Vivendi-backed Canal+, which is already the largest MultiChoice shareholder with a 36.6% ownership interest, would acquire the remainder of the company that it does not already own.

The companies jointly announced on Monday that they have entered into a cooperation agreement over the offer.

The improved offer of R125 (US$6.71) per share comes after Canal+ made an offer in February of R105 per share, which was rejected.

MultiChoice has a presence in 50 markets across Sub-Saharan Africa and operates dozens of channels and entertainment platforms, including pay TV service M-Net, the DStv satellite service and streamer Showmax, the latter of which was recently relaunched through a partnership with Comcast’s NBCUniversal and Sky.

However, even if the deal is approved by shareholders, it still may not be approved by South African regulators as the country has rules that limit foreign ownership in local broadcasters to 20% voting rights.

Despite that, Canal+ Group chairman and CEO Maxime Saada has said he is confident Canal+ can get a deal over the line that complies with local laws.

By combining the companies, Saada said it will allow them to “invest even more in local productions and sports content, supporting the world-leading and vibrant creative ecosystem on the African continent and all over the world, and producing even more high-quality and compelling local stories.”

“The complementary geographies, considerable scale, and strengthened capabilities achieved by the combination of these two great companies will ensure that Africa can tell her own stories on her own terms both locally and globally,” he added.