MultiChoice looks to be considering Canal’s R35 billion acquisition offer

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Canal+ has offered to pay R125 per MultiChoice ordinary share to acquire the media firm and it seems that the board is considering.

The acquisition will only move forward if MultiChoice accepts the offer and it’s not clear if it intends to do that.

As of 5th April, Canal+ held 162 092 774 MultiChoice shares, representing 36.6 percent of MultiChoice’s 442 512 678 total ordinary shares. Canal+ will need to cough up a little over R35 billion to acquire the remainder although, per a“If Canal+ acquires any additional MultiChoice Shares during the course of the Offer at a price higher than ZAR 125.

With that in mind, it is likely to move fast in making a decision here lest Canal+ hoover up the remaining shares. “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. This could have significant benefits for the African creative and sports ecosystems, for example, by enabling high-quality content created on the continent to be distributed to an international audience,” reads the joint statement from Canal+ and MultiChoice.

 

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