French media company @CANAL+ Group is considering a R31.7 billion ($1.6 billion) acquisition of MultiChoice Group, offering R105 ($5.6) per share, a 40% premium over MultiChoice’s recent closing share price.
Despite already owning 31.7% of MultiChoice, Canal+ might face regulatory challenges in South Africa, where foreign ownership restrictions, particularly under the Electronic Communication Act of 2005, could pose obstacles. However, there are hints of a potential increase in the limit on foreign ownership, from 20% to 49%, opening the door for Canal+’s ambitions.
Meanwhile, MultiChoice is actively investing in its streaming video platform, Showmax , injecting an additional $89 million by March 31, 2024, signalling a commitment to fortify its position in the evolving media landscape.
Canal+’s proposed acquisition of MultiChoice, with its enticing premium offer, unfolds against a backdrop of regulatory complexities in South Africa, while MultiChoice bolsters its streaming services to stay competitive and adapt to changing consumer preferences.
