Canal+ Group, a French TV channel, has received final approval from the South African competition tribunal to acquire MultiChoice.
In a joint statement on Wednesday, Canal+ and MultiChoice said they are on track to conclude the transaction before October 8.
The two companies confirmed that the tribunal had endorsed the deal, which will see Canal+ acquire all outstanding ordinary shares of MultiChoice – Africa’s largest pay-TV broadcaster — at R125 (about $7) per share in cash.
However, the statement said the tribunal’s green light is subject to conditions announced earlier in the year, including a set of robust public interest commitments.
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The commitments, according to the firms, include continued funding for local general entertainment and sports content, support for historically disadvantaged persons (HDPs), and expanded participation for small and medium enterprises (SMMEs) in South Africa’s audio-visual sector.
Speaking on the latest development, Maxime Saada, the chief executive officer (CEO) of Canal+, said the approval is “a hugely positive step in our journey that brings together two iconic media and entertainment companies and creates a true champion for Africa to create a true champion for Africa”.
“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,” Saada said.
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“The combined Group will benefit from enhanced scale, greater exposure to high-growth markets and the ability to deliver meaningful synergies.”
On his part, Calvo Mawela, CEO of MultiChoice, described the move as a “significant milestone”.
“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,” he said.
MultiChoice’s South African broadcasting licence operations is expected to be transferred to a new independent entity as part of the agreement.
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“The structure includes MultiChoice (Pty) Ltd (“Licence Co”), the entity which contracts with South African subscribers, being carved out of the MultiChoice Group and becoming an independent entity, majority owned and controlled by HDPs,” the statement added.
On February 2, 2024, Canal+ proposed to buy out MultiChoice at $1.69 billion, but the South African firm rejected the deal.
The French company later raised the offer to $2.9 billion to acquire MultiChoice.
In June 2024, MultiChoice’s board approved the deal, describing it as “fair and reasonable”.
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