Canal+‘s long-running takeover of African content giant MultiChoice has moved a step closer.
The South African Competition Tribunal has approved the deal, subject to “agreed conditions,” which include maintaining local funding for South African general entertainment and sports content and providing local creators with opportunity.
Paddington owner Canal+ and MultiChoice released a statement via the Johannesburg Stock Exchange saying they are still working to the planned October 8 completion date.
France-based Canal+, which already owns over a third of MultiChoice, is due to pay 35 billion rand ($2B) to acquire the business, with shares valued at 125 rand each. The agreement values MultiChoice at around 55 billion rand.
“The approval by South Africa’s Competition Tribunal marks the final stage in the South African competition process and clears the way for us to conclude the transaction in line with our previously communicated timeline,” said Maxime Saada, CEO of Canal+, which listed in London earlier this year.”
Canal+ has been seeking to build out its business in Africa, in particular English-speaking markets, and has invested in several drama series as it built its stake in MultiChoice.
“It is a hugely positive step forward in our journey to bring together two iconic media and entertainment companies and create a true champion for Africa. I’m excited about the potential this transaction unlocks for all stakeholders, notably South African consumers, creative businesses and the nation’s sporting ecosystem. The combined group will benefit from enhanced scale, greater exposure to high-growth markets and the ability to deliver meaningful synergies.”
For the South African business, the new owner would put it on a more stable financing footing and likely supercharge its spending power.
Calvo Mawela, CEO of MultiChoice Group, added: “The announcement marks a significant milestone and is a major step forward for both companies. It reflects the strength of our strategic vision and our ongoing commitment to continue uplifting the communities where we operate. We look forward to executing the remaining processes required to complete the transaction and to start building something extraordinary: A global media and entertainment company with Africa at its heart.”
Canal+ made its offer for MultiChoice – which owns linear channels, streamer Showmax and production assets – in March last year after a first bid a month before had been rejected.
The Paris-based company spun off from its former parent, Vivendi, in December and listed on the London Stock Exchange, becoming the first media company to do so in several years. Shares are currently trading at 228p ($3.09), as the new today led to a small uptick.