French media group Vivendi's Canal+ has made an all-cash mandatory offer today to buy all the shares of South African broadcaster MultiChoice, which it does not already own, for 35 billion rands ($1.9 billion), both companies said.
The offer at 125 rand per share follows Canal+'s indicative offer of 105 rand on Feb. 1, which MultiChoice rejected as significantly undervaluing the company.
Canal+, MultiChoice's biggest shareholder, raised its holding in the firm above the 35% threshold, triggering the need to make a mandatory offer. According to Reuters calculations, Canal+'s new offer values MultiChoice, which now owns a 36.6% stake, at about 55 billion rand.
The deal would create a pan-African broadcasting powerhouse with about 31.5 million subscribers across over 50 countries. The French media company has a broad reach in French-speaking African nations, while MultiChoice has a stronger presence in English-speaking countries, including South Africa, Nigeria, and Kenya.
