Canal+ Group, a French television network, has expressed its intention to acquire all shares of South Africa’s MultiChoice for $1.69 billion.
According to Reuters, Canal+ issued a statement on Thursday, confirming the submission of a proposal to this effect.
As the largest shareholder in MultiChoice with a 31.67 percent stake, as reported by data from the London Stock Exchange Group (LSEG), Canal+ indicated a potential offer of 105 rand per share in cash—a 40 percent premium compared to MultiChoice’s closing share price on Wednesday.
The French company emphasized that its proposal, totaling 31.7 billion rand ($1.69 billion), is non-binding and indicative.
It is anticipated that Canal+ will deliver a letter of firm intention to MultiChoice’s board following the completion of due diligence.
“MultiChoice to continue to thrive in Africa will require a strategy that enhances its scale as well as strengthened local and global expertise,” Maxime Saada, chairman and chief executive officer (CEO) of Canal Plus, said in a statement.
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“Our potential offer, if successful, would be an important next step for MultiChoice to realise its full potential.”
MultiChoice, which operates across 50 countries in sub-Saharan Africa, confirmed the development, acknowledging receipt of a letter from the French media company, Canal+. MultiChoice stated it would inform shareholders of any further updates.
Canal+ is under the umbrella of Vivendi SE, a French mass media holding company with its headquarters in Paris.