by Bloomberg
Vivendi SE's Canal+ made an all-cash formal offer for the MultiChoice Group, valuing the South African pay-TV operator's shares at $2.9 billion (R35 billion) as the French firm moves ahead with its plans to boost its presence on the continent.
Canal+ will offer to buy shares at 125 rand apiece, MultiChoice and Canal+ announced in a filing on Monday.
The bid will now be considered by a newly formed independent board of MultiChoice.
MultiChoice shares have climbed 25% since Canal+ first announced its plan to purchase the broadcaster in February. The South African company declined the initial offer of R105 per share.
If the French broadcaster is able to navigate South Africa's limits on foreign media ownership it will gain greater access to the market in Africa, home to the world’s fastest-growing and youngest population.
The South African billionaire Patrice Motsepe could join Canal+ to get a deal done, although discussions are early stage.
Canal+ reserves the right to buy more MultiChoice shares in the market, it said in the statement. Should these be bought at more than R125 each, the French company would be obliged to raise the offer price to "not less than the highest consideration paid" per share bought.
Canal+ began buying shares in MultiChoice as far back as 2020 and surpassed a 35% holding in the company this year, triggering a mandatory takeover offer.
Vivendi has developed a strong presence in high-growth regions in Africa and Asia, and plans to list Canal+ - its largest unit - separately. The French company said previously that it plans to keep MultiChoice listed on the Johannesburg Stock Exchange (JSE).
According to MultiChoice, its board has appointed Standard Bank as its advisor on the deal.
According to a joint statement by MultiChoice and Canal+ "A combined group would be better positioned to address key structural challenges and opportunities resulting from the progressive digitalisation and globalisation of the media and entertainment sector".
