Canal+, the French media giant, has announced its intention to acquire additional shares of MultiChoice, Africa’s largest Pay-TV company, by April 8. The move comes after securing a ruling from South Africa’s Takeover Regulatory Panel, mandating the announcement due to Canal+’s 35.01% shareholding triggering a mandatory offer requirement.
Panel Decision and Share Acquisition Plan
The Takeover Regulatory Panel compelled Canal+ to make a solid intention announcement regarding the acquisition of MultiChoice shares. As the largest shareholder with a 35.01% stake, Canal+ agreed to the decision, obtaining an exemption from timing requirements. The panel granted an extension not exceeding 25 business days for the acquisition process.
According to reports, Canal+ previously proposed to purchase the remaining MultiChoice shares at 105 rands per share, representing a 40% premium over MultiChoice’s closing share price of R75 on January 31, 2024. However, MultiChoice rebuffed the offer, asserting that Canal+ undervalued the company.
Canal+ as Major Shareholder
MultiChoice, known for its streaming service Showmax, is strategically positioned to leverage Africa’s burgeoning entertainment industry. With Canal+ witnessing a 2.56% rise in its MultiChoice shares, the French media conglomerate reaffirms its commitment to capitalize on Africa’s evolving entertainment landscape.
MultiChoice Subscription Price Hikes
The acquisition plans unfold amidst MultiChoice’s recent subscription price increases, which have stirred controversy. In November 2023, MultiChoice announced a 19% hike across its DStv and GoTv monthly subscription packages, followed by another 20% increase in December 2023. The company cited rising operational costs as the reason behind the price adjustments.
Public Reaction and Industry Concerns
The subscription price hikes have drawn criticism from subscribers, prompting calls for government intervention. Various stakeholders, including the Nigerian Association of Telephone, Cable TV, and Internet Subscribers (ATCIS), have expressed concerns over the escalating pay TV subscription fees, highlighting the need for regulatory oversight.
Canal+’s acquisition pursuit amidst MultiChoice’s pricing controversy underscores the dynamic landscape of Africa’s media and entertainment sector, raising questions about market competition and consumer affordability.
