bloomshorts Canal+ Clears Final Hurdle in MultiChoice Acquisition
Canal+ has successfully navigated the final regulatory approval from South Africa’s competition tribunal, marking a pivotal moment in its acquisition of MultiChoice Group. This acquisition encompasses renowned brands like DSTV and GOTV, heralding a new era in Africa’s pay-TV sector.
Deal Details and Commitments
The agreement stipulates a mandatory cash offer of ZAR 125 ($7.11) per share for the outstanding ordinary shares of MultiChoice not already owned by Canal+. Notably, the deal includes public interest commitments aimed at bolstering the role of historically disadvantaged persons and small businesses in South Africa’s audiovisual industry, alongside guarantees for continued investment in local entertainment and sports content.
Strategic Implications and Future Steps
With the regulatory green light, Canal+ and MultiChoice are poised to execute a structural arrangement that complies with South Africa’s local ownership laws. This involves establishing an independent entity with majority ownership by historically disadvantaged persons. The CEOs of both companies have expressed optimism about the merger’s potential to unlock new growth opportunities and operational synergies, with the transaction expected to conclude by October 8.
