Canal+ to increase bid for MultiChoice
Vivendi-owned Canal+ Group is set to table an improved bid to up its minority stake in The MultiChoice Group and take full ownership of the African broadcasting giant.
Having seen its previous €2.5bn (US$2.7bn) bid of SAR105 (US$5.50) per share rebuffed last month, Canal+ will return with a new all-cash offer of SAR125 per share.
Canal+ is working with JPMorgan Chase & Co and Bank of America to prepare a formal offer, which is due by April 8.
The French group currently owns a 31.7% stake in the South Africa-headquartered company, which is active in 50 markets across sub-Saharan Africa and owns the Showmax OTT service jointly with Comcast.
MultiChoice today issued a statement to shareholders saying both companies have agreed to co-operate and MultiChoice will be speaking exclusivity to Canal+ about a takeover.
MultiChoice said an independent board would provide an opinion and recommendations on the new offer in due course.
The move comes after Canal+ was informed by South Africa’s takeover panel at the end of February that it had to make a mandatory offer for MultiChoice.
If the bid is successful, Vivendi would look to combine its local Canal+ operations in Africa with MultiChoice’s to create a powerhouse with almost 50 million subscribers and the scale to invest more in local content and sports rights.
MultiChoice operates dozens of channels and entertainment platforms, including pay TV service M-Net, the DStv satellite offering and streamer Showmax.
The group’s revenue fell by 1% to SAR28.3bn during the six months ending September 30 last year as the group battled local and global economic headwinds.
MultiChoice said factors contributing to the slight fall in profitability included the ongoing South African energy crisis, cost of living pressures and sharp depreciation in local currencies against the dollar.
The group was recently linked with Comcast’s NBCUniversal and Sky to relaunch Showmax with a refreshed brand and revamped content line-up, including English Premier League football, local originals and US series.
Vivendi, meanwhile, is exploring the feasibility of splitting itself into several entities, including Canal+ Group and Lagardère, each of which would be listed on the stock market.
Following its acquisition of Luxembourg-based broadcaster M7 and channels provider SPI, Canal+ Group has taken strategic stakes in businesses such as Hong Kong-based OTT service Viu, embattled Nordic streamer Viaplay and MultiChoice as part of its international expansion plans.