A French media group, Vivendi’s Canal+, has formally offered $2.9 billion to acquire MultiChoice, owners of DStv and GOtv.
According to Reuters, the company made the offer on Monday, to expand its reach in Africa’s growing media market.
Canal+ proposed to buy shares at 125 rands ($6.7) each, pending approval from MultiChoice’s independent board.
Accordingly, this deal could give Canal+ a significant boost in Africa, home to the world’s fastest-growing and youngest population.
Although talks are still early, South African billionaire Patrice Motsepe might join Canal+ to facilitate the deal.
Canal+ began investing in MultiChoice in 2020 and now holds a 35 percent stake, triggering the takeover offer.
“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,” the companies said.
Canal+ aims to leverage MultiChoice’s acquisition as part of its entry strategy into the African market. Discussions are underway for Canal+ to potentially partner with South African billionaire Patrice Motsepe to address limitations on foreign media ownership in South Africa.
The bidding for MultiChoice started on February 2, when Canal+ offered to buy all the shares it did not own in the firm for about $1.7bn.
MultiChoice has a more substantial presence in English-speaking countries, including South Africa, Nigeria, and Kenya.
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