French Firm Expands Its Stake in African Pay-TV Giant.
Canal+, a subsidiary of the French media conglomerate Vivendi, has steadily increased its stake in MultiChoice, Africa’s leading pay-TV provider, from 20.1% in 2020 to over 35% by early 2023. This development has triggered a mandatory offer under South African law, requiring Canal+ to propose a buyout of remaining shares. Recent bids include a notable improvement to 125 rand per share, a 20% rise from its earlier offer.While MultiChoice has demonstrated strong subscriber growth and robust financial performance, challenges remain. Its average revenue per user has been on a decline, and its share price has been volatile, making it an appealing acquisition target. Meanwhile, Canal+ has faced financial pressures in its home markets, possibly fueling its interest in consolidating its footprint in Africa.
Regulatory hurdles could complicate the takeover. South African laws limit foreign ownership of broadcasters to 20%, prompting Canal+ to consider creative solutions such as partnerships with local entities. These partnerships could allow it to influence operations without exceeding voting rights limitations.If successful, this acquisition would create a powerhouse in Africa’s pay-TV market, combining Canal+’s 7 million subscribers with MultiChoice’s 23.5 million. However, the outcome will depend on the ability to navigate regulatory challenges and implement cost synergies effectively.
