Acquisition of South African operator values company at 55bn Rand (£2.3bn) and is on track to complete in October
France’s Canal+ is set to complete its acquisition of Africa’s largest pay TV outfit, MultiChoice in South Africa, after its takeover bid gained approval from the country’s Competition Tribunal.
The sale is subject to a series of conditions, including committing to spend on local entertainment and sports programming in South Africa and supporting producers in the country.
The decision had been broadly expected after the Competition Commission gave the deal a positive recommendation in May.
Canal+ already holds a stake of more than 40% in MultiChoice, which operates numerous channels across the region, as well as the Showmax streamer.
However, it is looking to take full control in a 35bn Rand (£1.47bn) takeover that values the South Africa-based company at 55bn Rand. The move has previously been described by chief exec Maxime Saada as the “most transformative acquisition in [Canal+] history”.
The French company said the takeover is expected to complete by the previously announced 8 October deadline, although it still requires approval from the Independent Communications Authority of South Africa (ICASA).
Part of that process will see ICASA approving a plan to allow the transfer of MultiChoice’s broadcasting licence to a new company, named LicenceCo, to comply with local regulation around foreign ownership.
Canal+ chief Saada said the approval gained today “marks the final stage in the South African competition process and clears the way for us to conclude the transaction in line with our previously communicated timeline.”
He added that the deal would allow MultiChoice to expand its reach and offering to customers.
Calvo Mawela, chief exec at MultiChoice Group, added: ”The announcement marks a significant milestone and is a major step forward for both companies. It reflects the strength of our strategic vision and our ongoing commitment to continue uplifting the communities where we operate.
“We look forward to executing the remaining processes required to complete the transaction and to start building something extraordinary: a global media and entertainment company with Africa at its heart.”
Canal+, which split from parent Vivendi last year and subsequently listed in London, has interests in streamers around the world, including Viu in Asia, in which it holds a 37.2% stake, with the option of taking that up to 51% by the end of 2026.
The group also owns a 29.3% stake in Nordic-focused Viaplay, making it the streamer’s largest investor.
Olivier Bibas, head of original drama at Canal+, told Broadcast International earlier this summer that the company’s expanding international footprint will allow it to greenlight more bigger budget shows in the vein of Paris Has Fallen, as it looks to compete with US-based streamers.
No comments yet