CANAL+ EYES MULTICHOICE FOR $1.6B (Victoria Fakiya)
French media company Canal+ is contemplating a R31.7 billion ($1.6 billion) acquisition of MultiChoice, a South African media company. Canal+ is offering R105 ($5.6) per share, a 40% premium over MultiChoice’s recent closing share price. Notably, Canal+ already owns 31.7% of MultiChoice, despite regulatory challenges to foreign ownership in South Africa.
Comcast, the parent company of NBCUniversal and Sky, acquired a 30% stake in MultiChoice in 2023, facilitating collaborations between NBCUniversal’s Peacock streaming service and the New Showmax platform.
However, potential regulatory hurdles exist for Canal+ as the Electronic Communication Act of 2005 in South Africa restricts foreign control of commercial broadcasting licenses and ownership shares. There are speculations that South Africa might consider increasing the limit on foreign ownership by 49%, but this is uncertain.
Canal+ remains optimistic, emphasizing that a partnership with MultiChoice could lead to success and ensure a strong future for MultiChoice. In response, MultiChoice is investing an additional $89 million in its streaming video platform, Showmax, by March 31, 2024.
Source: Tech point a
