Could MultiChoice And Canal+ Continue To Operate Separately After The Acquisition?

During the year, Canal+ had expressed interest in acquiring remaining shares of the DStv parent company, MultiChoice. Initially serving as a minority shareholder with around 6%-8% in 2020 now owns almost half of the pay-tv company in 2024.

As some readers are aware, Canal+ possible takeover of MultiChoice won't be a simple walk in the park. There's various legal procedures which they have to go through particularly with the Competition Commission seeing as Canal+ is a foreign investor.

According to mandate, Canal+ can only have 20% voting rights of the company. If a takeover is to happen, we could be faced with the possibility of MultiChoice losing its status as an official broadcaster in South Africa.

MultiChoice serves as a monopoly in their current field extending their doors to over 50 countries across Sub-Saharan Africa. It is home to SuperSport, Africa's biggest player in the sporting industry all of which might be folded under French management.

Canal+ intends to play good sport and abide by whatever condition are set by local legislation. This isn't the first rodeo as they snatched French broadcaster Orange TV film and pay-tv group alongside M7 Group a pay-tv brand based in Europe. 

The intention is to unify MultiChoice with their current operations and better equip it to take on the likes of Netflix and Disney+. MultiChoice's pay-tv dominance had seen declines in recent years particularly in South Africa which puts them at uncertainty. 

If this deal were to move around some guesses here is that Canal+ may be exempted from some properties like M-Net, Mzansi Magic and KykNET. Perhaps those will be structured like Moja Love and SABC News were funding is being splashed to keep it on air.

Other brands like Africa Magic and SuperSport could be under the division of Canal+. Same goes with MultiChoice Studios, although channels like M-Net remain untouched in these matters the content however is all under French management. 

Honestly such scenario wouldn't really seem to far fetched. When Disney had acquired 21st Century Studios this exempted FOX News and the American feed of FOX even Canal+ acquisition of Orange TV this was a subsidiary not the parent company, Orange S.A.

MultiChoice and M-Net could continue to operate independently with less expenses. This new division would probably put more focus on Showmax and select few linear channels with someone appointed to manage these assets while others opt for Canal+.

Canal+ Now Owns More Than 45% Of MultiChoice

French media giant Group Canal+ has acquired a further 7,374,918 shares in DStv parent MultiChoice in the past week, bringing its total ownership of the local broadcaster to 45.20%.

It acquired the shares between 8 and 10 May 2024, paying between R119.44 and R119.68.

“Canal+ confirms that these acquisitions have already been disclosed to the Takeover Regulation Panel (TRP) as required under the Companies Act and [the Takeover Regulations],” it said.

“After the aforementioned trades are implemented, Canal+ will hold an aggregate of approximately 45.20% of the MultiChoice Shares in issue.”

“Save as may be prohibited under the Companies Act and the Takeover Regulations, Canal+ may acquire further MultiChoice Shares after the date of this announcement whilst the Offer remains open,” it added.

Canal+ has gradually increased its shareholding in MultiChoice since April 2024, after its creeping takeover of the DStv parent began in October 2020.

The French media giant last notified the market on Wednesday, 8 May 2024, that it had increased its MultiChoice stake to around 43.54%.

It has been notifying the market of its MultiChoice stock purchases through the Takeover Regulation Panel each week since the companies revealed that it broke through the 40% ownership mark.

“Some shareholders have asked whether Canal+ might cross the 50% shareholding in this way,” MultiChoice said in a media statement following the disclosure.

“We do not envisage this happening as exceeding 50% ownership would amount to a merger under the Competition Act, which would require prior approval from the Competition Tribunal.”

MultiChoice previously explained that Canal+ would be forced to increase its offer price if it were to buy shares for more than R125 each.

Canal+ Group Gets Anti-Trust Approval To Acquire French Pay TV Group OCS And Orange Studio, Under Certain Conditions

With great power comes great responsibility. Canal+ Group has received the conditional approval from the anti-trust board to acquire Orange Studio and OCS, the film and pay TV operations of Orange, France’s leading telco group.

Canal+ has committed to a number of remedies for an initial duration of five years in order to get the regulatory green light and address concentration concerns.

The acquisition of OCS by Canal+ could have large ramifications on the local film industry because both players represent the top two sources of pre-financing for French movies. Canal+ is currently on a three-year deal (until the end of 2024) with film guilds to invest an average of €200 million per year in French and European cinema. OCS, meanwhile, has a deal with producers to invest €20 million annual investment in local pics.

Under the plans presented to the regulatory commission, OCS will be combined with Cine+, one of Canal+’s channels, but it will continue to operate independently. Canal+ has pledged to maintain separate purse strings for OCS/Cine+ to continue acquiring movies for first-window rights, as well as having a separate acquisition team. Canal+ has also committed to having OCS/Ciné+ pre-buy a minimum of 25 French film projects over the next five years, including at least four French film projects per year (and one project budgeted under €4 million).

In recent years, OCS has pre-bought many movies that were turned down by Canal+, for instance “Bernadette,” the critically acclaimed movie with Catherine Deneuve playing former first lady Bernadette Chirac, and “Planet B,” a politically minded dystopian film starring Adele Exarchopoulos and Souheila Yacoub.

Aside from Canal+, French producers have limited options to pre-finance movies in France. Netflix, Amazon Prime Video and Disney+ are bound to play a larger role due to their investment obligations in local content, but the anti-trust said in its decision that “subscription-based streaming services don’t represent real and potentially sufficient alternatives to (Canal+ and OCS), notably in terms of diversity.”

Canal+ Group, whose parent company is Vivendi, already owns 33.3% of OCS, the pay-TV arm of Orange, and has been distributing the service on its platform as part of its cable bundle since 2011.

Orange Studio, meanwhile, is the content division in charge of co-producing, selling abroad and distributing select films in France. The company distributed Florian Zeller’s “The Father” and “The Son” in France.

Canal+ has come a long way with France’s anti-trust board. In 2011, the board had blocked Canal+ Group’s attempt to merge with OCS and launch a premium pay TV channel. But that was before the arrival of streaming services in France. Netflix, which launched in late 2014, now has more subscribers than Canal+ (9.8 million locally), and OCS (approximately 2.9 million subscribers).

Canal+’s also recently took a 12% stake in Viaplay, the financially troubled Scandinavian streaming platform. Its other streaming assets include South Africa’s Multichoice Group, Hong Kong-based OTT service Viu International. 

French Pay TV Operator Canal+ Is To Follow Up Its Acquisition Of Orange’s Pay TV Service OCS By Launching A New Bouquet Of Channels And On-Demand Services, Ciné+ OCS, On July 3

The new offering will incorporate what Canal+ says is the best of the OCS offering with its Ciné+ service. Ciné+ OCS will be available via Canal+ but also direct via distribution partners.

The offering will comprise six channels and an on-demand service that includes access to films distributed exclusively six months after their theatrical release.

It will also include French and international exclusive series, and OCS Signature productions.

The channels on offer include: OCS, a flagship offering with films available six months after their theatrical release, and French and international series; Ciné+Frisson, a movie channel including blockbusters, thrillers, horror movies and popular franchises; Ciné+Émotion, a channel focusing on romantic drama films and romantic comedies; Ciné+Family, a channel focusing on family films, popular comedies, animation and kids content; Ciné+Festival, focusing on independent movies and world cinema; and Ciné+Classic, providing access to cult and classic French, America and European films from the 1930s to the 1990s.

Films and series available from the launch of the offering will include Les Trois Mousquetaires : Milady, Revoir Paris, Novembre, Scream VI, Donjons & Dragons : L’Honneur des voleurs, Babylon, Hokusai, Black Adam, Mon crime, De grandes espérances, Bernadette, 10 jours encore sans maman, and Notre tout petit petit marriage along with series Twisted Metal season 1, The Walking Dead : Dead City, Sentinelles – Ukraine, Alex Rider season 3, Extra and Toutouyoutou season 2.

South Africa’s Takeover Regulation Panel (TRP) Has Granted MultiChoice And Canal+ An Extension To The Period They Have To Finalise An Agreement To Be Put To Shareholders

On April 8, the French pay TV operator and the South African service provider agreed to post a ‘combined circular’ to shareholders by May 7, some 20 business days later. This would have marked the point at which Canal+’s offer was open to shareholders to accept.

The pair have now secured an extension until June 4.

MultiChoice said the extension was necessary to give its independent expert and the independent board enough set up to examine the deal  time to properly fulfil their responsibilities.

Canal+ and MultiChoice agreed the terms of the French pay TV operator’s proposed mandatory offer to acquire 100% control of the South African company on April 8, with MultiChoice shareholders to receive ZAR125 per ordinary share.

The price was well above the ZAR105 regulatory minimum threshold and represents a 67% premium on MultiChoice shares’ closing price on February 1. When Canal+ made its initial offer for the company.

MultiChoice set up an independent board to consider the offer and appointed Standard Bank of South Africa to advise it.

If Canal+ succeeds in securing 90% of MultiChoice shares during the offer period, it then has the right to acquire any remaining shares and delist MultiChoice.

Since the outline agreement, Canal+ has acquired further shares in MultiChoice, taking its stake to above 40%.

Canal+ Owner Vivendi Is Still Exploring A Stock Split, Publishes First Quarter Revenue

Canal+ owner Vivendi is still exploring a stock split, as it today posted first quarter revenues up significantly.

France-based Vivendi posted Q1 revenues of €4.28B (R86 billion), up 5.4% on 2023’s numbers when using constant currencies and and the businesses the firm owns today. No earnings were revealed in the unaudited numbers.

Within those numbers, Canal+ saw revenues grow 4.3% year-on-year to €1.5B (R30 billion, +3.5% at constant currency and perimeter). International revenues were up 5.8% thanks to subscriber growth, particularly in Africa, where Canal+ has been buying up shares in MultiChoice and looks set to take over the South African giant. Mainland France TV operations revenue was up over 5%.

However, Studiocanal saw revenues decline compared with 2023, when the likes of Alibi.com 2 and John Wick 2 had significant domestic and international launches.

Other notable performances saw social video platform Dailymotion increase revenues by 24.8%, with the ‘New Initiatives’ division it is housed in posting €42M in revenues overall.

This financials come amid a period of corporate soul-searching at Vivendi, and following the takeover of publisher Lagadère in November last year.

The Paris-based company believes its stock price has been “substantially” reduced due to the consolidated nature of its media operations following the listing of Universal Music Group and wants to split its business.

Having already outlined a plan to explore dividing pay-TV and content giant Canal+, ad firm Havas and publisher Lagadère, Vivendi said a feasibility study into a stock split had been going since December 2023. The company says all three units are individually performing well — with each posting year-on-year revenue growth today — and have been hindered in their ability to invest by the “high conglomerate discount” on its shares.

The current plan is for Canal+, Havas and a publishing and distribution division would all list as independent entities on the stock market. Vivendi would also remain publicly listed “maintaining its role of supporting the transformation and expansion of its subsidiaries and continuing to actively manage its investments.”

Should the Vivendi board approve the split, employee representatives at each new entity would be engaged before necessary regulatory, bonder holder and other lender approvals is sought. A final vote would then take place at the AGM in April 2025 to ratify the moves.

Yannick Bolloré, Chairman of Vivendi’s Supervisory Board, and Arnaud de Puyfontaine, Chairman of Vivendi’s Management Board, said in a statement: “Today we are publishing a particularly sharp increase in revenues for a first quarter. This reflects the strength of our three core businesses and the Group’s ability to transform and grow.

“The organic growth of 5.4% compared to the first quarter of 2023 was notably driven by the significant contribution of Lagardère, validating the relevance of the transaction with this group last November and our confidence in the potential of its activities. Canal+ Group and Havas also delivered solid performances, with increases in reported revenues of 4.3% and 6.2%, respectively, over the same period.”

Canal+ Increases Stake In MultiChoice To Almost 42%

French media group Canal+ today announced it has acquired additional shares In MultiChoice, the operator of Africa’s biggest pay-TV – DStv.

Following a significant increase in its ownership stake, Canal+ has triggered a mandatory offer to minority shareholders of MultiChoice Group. This action was necessitated after surpassing a predefined threshold established by the JSE.

In accordance with JSE regulations, when an individual or entity acquires at least 35% of a listed company, a mandatory offer must be extended to other shareholders under terms agreed upon with the main exchange.

Canal+ has put forth a mandatory offer to acquire all outstanding shares of MultiChoice Group not already held by the conglomerate. The proposed purchase price stands at R125.00 per share, payable in cash, signaling Canal+’s commitment to further consolidate its position within the media landscape.

Today, Canal+ announced it has increased its shareholding to 41.60% in MultiChoice.

Canal+ has acquired in on/off market transactions, a further 3,374,668 MultiChoice Shares, as follows:

• On Thursday, 18 April 2024, Canal+ acquired 18,633 MultiChoice Shares in on/off market

transactions for an average consideration of ZAR 116.00 per MultiChoice Share

• On Friday, 19 April 2024, Canal+ acquired 101,468 MultiChoice Shares in on/off market transactions for an average consideration of ZAR 115.99 per MultiChoice Share

• On Monday, 22 April 2024, Canal+ acquired 1,618,032 MultiChoice Shares in on/off market

transactions for an average consideration of ZAR 116.42 per MultiChoice Share

• On Tuesday, 23 April 2024, Canal+ acquired 342,678 MultiChoice Shares in on/off market

transactions for an average consideration of ZAR 116.83 per MultiChoice Share

• On Wednesday, 24 April 2024, Canal+ acquired 1,293,857 MultiChoice Shares in on/off market

transactions for an average consideration of ZAR 117.59 per MultiChoice Share

After the aforementioned trades are implemented, Canal+ will hold an aggregate of approximately

41,60% of the MultiChoice Shares in issue.

“Canal+ confirms that these acquisitions have already been disclosed to the Takeover Regulation Panel (TRP) as required under the Companies Act No. 71 of 2008 (Companies Act) and Chapter 5 of the Companies Regulations, 2011 (Takeover Regulations).”

Just weeks after revealing that Imtiaz Patel would remain as chairman to manage a potential deal with Groupe Canal+, MultiChoice Group has now announced Patel’s immediate departure from the position.

This decision arises amidst growing worries about corporate governance within the broadcasting company, currently under a takeover proposal by France’s Canal+.

In an unexpected turn of events, MultiChoice disclosed on April 2nd, after a board meeting ahead of the Easter weekend, that it was retracting an earlier statement regarding Patel’s planned resignation. The board had previously announced that Elias Masilela would assume the chairmanship starting April 1st.

“In view of the recent ruling by the Takeover Regulation Panel that required Canal+ to make an immediate mandatory offer to all MultiChoice shareholders…the MultiChoice board has reached an agreement with Imtiaz Patel to remain on as chair,” the company said at the time.

MultiChoice Has Announced Imtiaz Patel’s Exit As Chairman, Just Weeks After Saying He Would Stay On In The Role

Just weeks after announcing that its chairman, Imtiaz Patel, would stay on to oversee a possible deal with Groupe Canal+, MultiChoice Group on Tuesday announced Patel’s exit from the role with immediate effect.

The move comes amid concerns about corporate governance at the broadcaster, which is the subject of a takeover bid by France’s Canal+.

In a surprise move, MultiChoice said on 2 April — following a board meeting before the Easter weekend — that it had rescinded a previous announcement that Patel would step down, with board member Elias Masilela due to take up the chairmanship from 1 April.

“In view of the recent ruling by the Takeover Regulation Panel that required Canal+ to make an immediate mandatory offer to all MultiChoice shareholders … the MultiChoice board has reached an agreement with Imtiaz Patel to remain on as chair,” the company said at the time.

“The board believes there is significant benefit in continuity at this time, and Mr Patel has agreed to extend his tenure until the conclusion of the Canal+ transaction or such sooner date as may be determined in light of progress on the transaction,” it said then.

Now, just three weeks later, Patel is stepping down – this time apparently for good.

Explaining why Patel is leaving, just three weeks after the board decided he should stay on, MultiChoice told investors that at the time of the announcement on 2 April, discussions were in their final stages on key terms of the proposed transaction with Canal+.

‘Next phase’

“These culminated in MultiChoice and Canal+ entering into a co-operation agreement on 7 April and issuing a firm intention announcement on 8 April, with the material terms of the proposed transaction recorded in these documents,” it said.

“Given these developments, the progress that has been achieved thus far and the fact the independent board has been constituted and will fulfil its obligations under the takeover regulations, the proposed transaction has now shifted to the next phase.

“The board and Mr Patel have therefore agreed that now would be an appropriate time for Mr Masilela, the current deputy chair, to be appointed as chair as planned and for Mr Patel to step down from the board with effect from the date of this announcement.”

Patel will remain as an adviser to the group on a consultancy basis as originally planned, it said. 

Recap To The Decade: Canal+ Afrique Also Offer Pornographic Material With Hustlers TV And Private TV, What Could Await This Lineup Should It Rollout On DStv?

As some readers aware, StarSat once offered a pornographic content on their platforms for consumers in South Africa. This had garnered a lot of media coverage and even led to numerous legal disputes with the channels alienated within the region.

Despite StarTimes playing it safe by having those channel's offering reduced to weeknights and making consumers who opted to bundle the entertainment pay extra. Their attempts had proven to be unsuccessful and led consumers to flee the platform. 

Now Canal+ is seeking to acquire MultiChoice and should these attempts prove favorable. DStv's entertainment would have to be merge/aligned with Canal+'s current offering of course this may prove to be another hurdle.

Similar to StarTimes in select countries, Canal+ offers also offers pornographic material known as MultiMan TV with Hustlers and Private TV. It might form part of MultiChoice's current offering as part of an alignment of content and TV channels.

We're not saying that packages will be axed but seeing as Canal+ already offers English stations those will likely be the first to resurface on DStv. With MultiChoice residing in 22 million households they would give this entertainment further exposure. 

Development Alert: SPI International Expands With Digital Virgo in Key Regions (Including South Africa), FilmBox And Other Branded Channels Exit Turkey

SPI International, a CANAL+ company, has launched three dynamic channels — FilmBox Action, FilmBox Family, and FilmBox Middle East — in key regions, including South Africa, Ghana, Botswana, UAE, Qatar, Bahrain, Oman, Kingdom of Saudi Arabia, Iraq, Kuwait, Morocco, and Tunisia in partnership with Digital Virgo.

The FilmBox lineup will be accessible as part of the basic tier on platforms such as PLAYVOD, Veedz.TV, Unlimited Streaming, Moov TV, and MTTV.

“We’re thrilled to introduce FilmBox channels on Digital Virgo platforms in South Africa, Ghana, Botswana, and with Arabic subtitles in the Middle East. This expansion reflects our commitment to providing diverse, high-quality content that resonates with audiences globally. We believe these channels will further enhance the entertainment experience for viewers in these regions,” commented Georgina Twiss, MD Western Europe and Africa at SPI International.

“Digital Virgo remains committed to enhancing its value proposition to Telecom Operators through the provision of TV and VOD platforms that are ever richer in functionality and content. The renewed partnership with SPI International is part of this overall strategy,” added Vincent Taradel, CMO at Digital Virgo.

SPI International departs Turkey

During the week, SPI International had phased out its linear offering in Turkey as parent company Canal+ exits the market. With various channels under such as FilmBox (now Filmscreen), DocuBox (now Docuscreen) and FightBox (now Fightscreen) owned by Cosmoblue.

Most details pertaining to the content and graphics from each brand remain the same. We presume they could work closely with SPI International in terms of content allocation or they're slowly phasing that out.

Development Alert: Canal+ Acquires Additional Shares In MultiChoice

French broadcaster Groupe Canal+ has disclosed that it has bought even more shares in South Africa’s MultiChoice Group in recent days, taking its shareholding closer to the 50% mark.

In a regulatory filing with the JSE on Thursday, Canal+ disclosed that it bought millions more of the JSE-listed MultiChoice’s shares between 12 and 17 April. It acquired 3.65 million shares in that period, and has said it could buy more in the open market as it pursues its plan to acquire control of the parent company of DStv, Showmax and SuperSport.

According to the filing, Canal+ acquired the following shares in recent days:

• Friday, 12 April 2024: About 1.82 million shares in on/off-market transactions for an average consideration of R117.50/share;

• Monday, 15 April 2024: Some 810 000 shares in on/off-market transactions for an average consideration of R115.99/share;

• Tuesday, 16 April 2024: About 1.01 million shares in on/off-market transactions for an average consideration of R115.95/share; and

• Wednesday, 17 April 2024: Some 5 100 shares in on/off-market transactions for an average consideration of R116/share.

Following these share purchases, Canal+ holds 40.83% of the MultiChoice shares in issue.

“Save as may be prohibited under the Companies Act and the takeover regulations, Canal+ may acquire further MultiChoice shares after the date of this announcement while the offer [to MultiChoice shareholders] remains open…,” the French company said.

News of the additional share purchases comes 10 days after the two companies informed investors that they had agreed to work together on a mandatory offer that Canal+ must make to the MultiChoice shareholders. This was after Canal+ triggered a mandatory offer under South African rules by acquiring more than 35% of MultiChoice’s equity earlier this year.

Canal+ plans to offer MultiChoice shareholders R125/share in cash in exchange for their shares

The “cooperation agreement” will see the two broadcasting giants using “reasonable endeavours to cooperate in relation to the offer, including in relation to the fulfilment of the offer conditions and the publication of a combined offer circular”.

Canal+ is offering MultiChoice shareholders R125/share in cash in exchange for their shares.

If the deal hasn’t been consummated by 8 April 2025 – including securing the necessary regulatory approvals, which could still prove to be the biggest stumbling block to a transaction – then it could be terminated. This “long-stop date” can, however, be extended, with the concurrence of South Africa’s Takeover Regulation Panel, a financial regulator that is overseeing the mandatory offer.

Delisting

If the deal goes ahead, MultiChoice could be delisted from the JSE. If Canal+’s offer is accepted by shareholders with at least 90% of eligible MultiChoice shares, then the French firm has reserved the right to delist MultiChoice from the JSE. At the same time, though, Canal+ has said there is an opportunity, potentially, for South African investors to participate in its own proposed listing in Europe.

The Canal+ Effect: How The French Company Might Arrange MultiChoice Going Forward?

As some readers are aware, Canal+ is looking to finalize a takeover deal with MultiChoice. This sees Mzansi Magic, KykNET and Africa Magic under the management of a French based company Vivendi whose been looking to build their global portfolio. 

There's been many questions as to how Canal+ will align MultiChoice's assets and below is what we believe could be the final outcome:

StudioCanal

As the name implies, StudioCanal is a French based film production and distribution company that currently owns the third largest film library in the world. This is where ROK Studios resided after it was acquired in 2019 with MultiChoice Studios to follow. 

Interesting enough, StudioCanal also offers subsidiaries of the same name within Austria, Germany and the UK. If I had to guess StudioCanal Africa could be on the final piece of this puzzle.

MultiChoice Studios resides within 22 million households while StudioCanal resides within 8 million. Combining this would make it an African powerhouse and probably leading Africa to have its own subsidiary within the French company. 

StudioCanal is also home to the linear ROK channel and will likely be where Mzansi Magic, Africa Magic and KykNET reside.

M7 Group/Canal+ Luxembourg S.à.r.l.

M7 Group is a Luxembourg based and also one of Europe's leading pay-tv operators offering culture and language specific packages in eight countries including Netherlands, Germany, Austria, Belgium, Czech Republic, Slovakia and Hungary. 

As we've seen in recent years, Canal+ has been buying out companies as a means to expand. MultiChoice's DStv and GOtv packages would serve as distant relatives and also another means to get the M7 Group services into Africa.

Metropolitan France/Canal+ Premium

This section is dedicated to their linear offering which consist of self titled brands part of which reside in Africa like Canal+ Discover and Canal+ Sport. Even SPI International brands like FilmBox Africa and even FightBox have a dedicated section in this category. 

In terms of content, M-Net and SuperSport will be handled under this section. They are expected to be remain in operation but as far as branding is concerned that is yet to be determined. 

M-Net had been pivoting toward streaming in recent years by reducing their movie offering even shutting down their secondary network Me. If you look at it, M-Net could get a proper send-off or at least by name ideally it could rebrand to Canal+ Premium/Canal+ First.

Thereafter, M-Net could remain as a trademark for a collection of local channels like Pearl Magic, Africa Magic and Maisha Magic. Never got the sense in having M-Net as a singular brand and also for a collection of locally curated channels.

If the plan was to incorporate the Canal+ trademark on sports ideally Canal+ SuperSport would make a lot of sense. This is something that they could apply temporarily and overtime simplify the name to Canal+ Sport to get viewers accustomed. 

Canal+ Has Increased Its Shareholding In MultiChoice To 40% As The Two Companies Work On A Takeover

Despite already submitting an all-cash offer worth roughly R54 billion, Canal+ has increased its shareholding in MultiChoice from just over 35% to 40.01%

As per the Companies Act, Canal+ had to make an offer to buy the rest of MultiChoice after breaking the 35% threshold.

Canal+ has offered to buy all the shares at R125 apiece, which is being considered by a newly formed independent board at MultiChoice.

Although Canal+ was given the right to buy more MultiChoice shares earlier this week, should these shares be bought at more than R125 each, the French broadcaster would be obliged to increase the officer price to “not less than the highest consideration paid” per share bought. 

MultiChoice’s share price currently stands at just under R120 a share.

Despite Canal+ already owning 40% of MultiChoice, the latter’s memorandum of incorporation means that a foreign company’s aggregate voting power can not exceed 20% of the total voting power in the group to ensure certain statutory requirements.

10 TV Channels Exit DStv With More Closures Likely To Follow With Canal+ Acquisition Of MultiChoice

As some readers are aware, MultiChoice had removed 10 TV channels in under 5 months. This includes Deutsche Welle, Ginx TV, Emmanuel TV, B4U Movies, One Freestate Televisual, NWTV, 1Magic, People's Weather and Me with WildEarth to follow.

MultiChoice is in the midst of a possible takeover from French company Canal+ after garnering almost 37% hold of the company. With South African laws forcing them to obtain remaining shares and get approval from legislation or risk termination. 

If this deal goes forward, Canal+ and MultiChoice would be merging their stables with the acquirer Canal+ making some budget cuts. This is a norm when a company undergoes a takeover or merger but how much more turmoil can consumers put up with.

As discussed already, Canal+ assets clash with MultiChoice's current offering as the French company has bought up various properties in Africa. This includes ROK Studios who own the streaming service iROKO TV and linear ROK channels on DStv.

They're basically rivaling with M-Net's Africa Magic and unless Canal+ is looking to sell or restructure these brands they can't just "co-exist". Either ROK Studios will merge into Africa Magic or both will be unified to form another brand in the African market.

Same goes for their streaming services iROKO TV and MyCanal Afrique from Canal+ with DStv Stream and Showmax from MultiChoice. Unless there's no monthly fees attached, iROKO TV could be structured as a Showmax type streamer for Africa Magic.

Lastly, there's pay-tv platforms Canal+ offers to consumers within Francophone Africa while MultiChoice caters to English speaking countries. These serve as the most complicated of the pillar as Canal+ Afrique and DStv would be subjected to a merger.

These include a range of entertainment channels from both parties some of which will likely not form part of the merged packages. Canal+ has its own entertainment they can't just pay for duplicates unless it has appeal or originality in the mix.

Canal+ has stated that merging their assets with MultiChoice would give them a competitive advantage against NBCUniversal and Disney. These cutbacks are likely to hit all corners of DStv.

Recap To The Week: Canal+ Raises Offer For MultiChoice, Plans JSE Listing

Canal+ has substantially increased its offer for the MultiChoice Group to about R37.7 billion from R31.7bn after the local broadcaster said in February that the initial offer was too low.

MultiChoice’s share price increased 4.16% to R117 yesterday morning after the improved offer was announced. The share later closed the day 4.99% higher at R117.93.

Meanwhile, should Canal+’s own planned European listing proceed, there would be an opportunity for South African investors to become shareholders of the combined entity, as part of a secondary inward listing on the JSE, the companies announced yesterday.

Vivendi, the parent of Canal+, is currently doing a feasibility study to split the company into several separately listed entities. Canal + has 26.4 million subscribers, 17 million of which are outside France. MultiChoice claims 23.5 million subscribers.

The two groups said they had reached an agreement on proceeding and cooperating with the Canal+ takeover bid, that was formally announced on February 1, 2024, following talks between them of over a year.

Canal+’s stake in MultiChoice amounted to 35.01% by February 5, and this stake amounted to 36.6% on April 5.

The offer to MultiChoice shareholders was yesterday increased to R125 per share, from R105 cents when Canal+ first made the offer, which is “significantly above the minimum price of R105.00 required by the Takeover Regulations,” the companies said in a statement.

The new price represented a 66.66% premium to the R75 price on February 1, the last trading day prior to the offer first being made.

Meanwhile, should Canal+’s own planned European listing proceed, there would be an opportunity for South African investors to become shareholders of the combined entity, as part of a secondary inward listing on the JSE, the companies announced yesterday.

Vivendi, the parent of Canal+, is currently doing a feasibility study to split the company into several separately listed entities. Canal + has 26.4 million subscribers, 17 million of which are outside France. MultiChoice claims 23.5 million subscribers.

The two groups said they had reached an agreement on proceeding and cooperating with the Canal+ takeover bid, that was formally announced on February 1, 2024, following talks between them of over a year.

Canal+’s stake in MultiChoice amounted to 35.01% by February 5, and this stake amounted to 36.6% on April 5.

The offer to MultiChoice shareholders was yesterday increased to R125 per share, from R105 cents when Canal+ first made the offer, which is “significantly above the minimum price of R105.00 required by the Takeover Regulations,” the companies said in a statement.

The new price represented a 66.66% premium to the R75 price on February 1, the last trading day prior to the offer first being made.

It is also a 63.96% premium to the R76.24 30-day volume weighted average price on the last trading day, prior to the offer being delivered.

Canal+ has said that its aim is to build a global entertainment leader, with Africa at its heart, combining scale, complementary geographies, and international reach with strong local roots, that will support the development of Africa's sporting and cultural industries, and “take leading and authentic African stories to a global audience.”

Recognising South Africa’s black economic empowerment imperatives, it intends to support MultiChoice’s BBBEE initiatives and the transformation of its South African business.

Canal+ believes the offer would also provide MultiChoice shareholders with an opportunity to realise value at a significant premium, in cash.

“Canal+ believes the competitive landscape for Africa's media and entertainment industry will continue to undergo profound changes as the continent rapidly adopts broadband and mobile internet.”

This allowed international media companies and global OTT platforms (including Netflix, YouTube, Disney and Apple TV+), to use their scale and resources, to expand beyond their existing markets, increasing their focus on Africa and thereby challenging local rivals.

“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,” the companies said.

Also, through the combination with Canal+, in addition to operating in over 50 countries across Africa, MultiChoice would be part of a broader group, present across three continents: Africa, Europe and Asia. As a result, MultiChoice would benefit from the combined group's scale across its entire footprint.

Credits: IOL

Canal+ Makes Firm Offer For DStv Owner MultiChoice, Eyes Secondary JSE Listing

French media giant Canal+ announced on Monday it has now made a mandatory offer for a takeover of MultiChoice, offering R125 per share. The new offer price is almost 67% higher than the MultiChoice share price just before its first offer in February. 

MultiChoice, Africa's biggest pay TV operator, meanwhile has roped in Standard Bank as an independent expert to give an opinion on the offer, also agreeing to cooperate in ensuring its implementation.

An earlier non-binding offer of R105 per share in February was rebuffed by the board of Africa's biggest pay-TV operator as too low, and Canal+ subsequently upped its proposal in March to its current amount. MultiChoice had closed at R112.33 on Friday.

Canal+, whose parent is Vivendi, operates in 50 countries across Europe, Africa and Asia, directly serving 8 million customers in Africa. It had about 25 million total subscribers as of its 2023 year, while MultiChoice had 23.5 million. Both have serious ambitions for Africa and have acknowledged that scale is necessary in order to take on US giants such as Disney and Netflix.

"Canal+'s ambition is to build a global entertainment leader, with Africa at its heart, combining scale, complementary geographies, integrated and international reach with strong local roots, that will support the commercial development of Africa's sporting and cultural industries and take leading and authentic African stories to a global audience," it said on Monday.

"This long-term vision has its foundation in Canal+'s extensive and successful 30-year history of investing in African creative and sports broadcasting markets."

Vivendi, the parent company of Canal+, is also currently undertaking a feasibility study for the proposed split of the company into several separately listed entities, first announced in December.

Should a planned European listing proceed, there will be an opportunity for South African investors to become shareholders of the combined entity as part of a secondary inward listing on the JSE, the company said

Canal+ added on Monday it understood the imperative of broad-based black economic empowerment, and upon implementation it intends to support MultiChoice in its continued efforts of transformation of its South African business. This is usually also a condition imposed by SA's competition regulators, whose approval is required, while a circular for the offer will be released in due course.

Complicating matters had been SA laws that place limitations on foreign ownership of local broadcast licences. This means Canal+ can increase its shareholding in MultiChoice to any level, but its voting rights are limited to a maximum of 20%. Canal+ also increased its stake in the group to over 35%, which a threshold that triggers a mandatory offer.

However, given the voting cap, the Takeover Regulation Panel was then asked to make a ruling, finding in February that Canal+ must. Following an extension, it was given until 8 April to make its mandatory offer.

MultiChoice has also granted exclusivity to Canal+, which entails not engaging with other competing parties. However, should a better, unsolicited proposal be received, Canal+ will have the opportunity to revise its offer.

"Following constructive engagement with MultiChoice, we are pleased to have issued a joint firm intention announcement to make an offer today, representing a significant premium for the shareholders of MultiChoice," Canal+ chair and CEO Maxime Saada said in a statement.

"Canal+ is confident in making this offer, at a level which far exceeds the minimum required by regulation, due to the incredible future we believe that Canal+ and MultiChoice can build together," he said.

"We are excited about these opportunities, which will be supported by further investment in technology, including the continued offering of a leading satellite service, and rolling out more innovative streaming products."

SuperSport Vs. Canal+ Sport: Who Is Likely To Survive Canal+ Potential Takeover Of MultiChoice?

Canal+ Sport is a French based sports broadcaster owned by Canal+ that offers services in parts of Europe and Africa. Similar to the likes of SuperSport, Canal+ Sport also comprises of various linear channels featuring football, rugby motorsport and basketball. 

Last month, it was reported that Canal+ had increased its offer to takeover DStv by 19% with a sum of R35,9 billion. This comes after their initial offering of R32 billion was rejected with the Takeover Regulation Panel (TRP) ordering them to propose a new deal.

As some readers are aware, South African laws limit the ownership of businesses to foreign entities with Canal+ voting rights reduced to 20%. Although, they'd have majority stake of the company they wouldn't be able to exercise that level of ownership.

Since news of Canal+ possible takeover of MultiChoice came about, several consumers have been very skeptical about this ordeal. With some very keen on the fate awaiting several brands such as SuperSport for instance.

SuperSport is the biggest player in the world of sports across the African market. It is home to major sporting events such as Premier League, PSL, La Liga, MotoGP, Formula E and WWE most of which aren't accessible on Canal+ Sport.

Even if Canal+ was successful in obtaining MultiChoice most of the company's assets could remain intact this includes SuperSport. It has more reach in the market Canal+ also resides and offers sporting events Canal+ Sport was unable to retain due to exclusivity. 

Regions with Canal+ Sport will most likely see content from SuperSport surface on their channels and overtime fold under the trademark.

Could Canal+ Kids Expand Its Operations Through MultiChoice's DStv Or Showmax?

Canal+ Kids is a French based children's channel operated by the Canal Group that offers imported alongside locally produced content. It is known for shows such as Elvis Riboldi and Mush-Mush And The Mushables shows picked by Warner's kids networks.

With Canal+ looking to acquire Africa's largest pay-tv company MultiChoice with an announcement anticipated in the coming days. Several things await the possibly merged companies one of which is downsizing of staff and merger of assets.

As seen since the course of 2023, MultiChoice Studios expanded their local portfolio to the kids market with the addition of Jay Jay: The Chosen One. This serves as the first animated project with promises to expand the lineup if it proved to be favorable. 

By 2024, MultiChoice Studios has managed to launch an additional two titles Twende and Hero Space: Trust Your Inner Hero. The plan at the moment is to do more short form depending on their performance as the plan is to expand this to other countries. 

Canal+ Kids which is situated in French speaking countries had already followed on similar endeavors basically serving as a rival. With Canal+ looking to acquire MultiChoice its likely that Canal+ Kids could expand their portfolio to include other countries. 

I mean the idea wouldn't seem far fetched as Canal+ has an active presence in the kids circuit in parts of Europe. Through Poland, some content is distributed by Teletoon+ and in Africa this would be considered the equivalent of Play Room.

Possible Takeover: Canal+'s Investment In Viu Currently Stands At Approximately $300m, With The Option To Increase Its Stake To 50% Retained

France’s pay-TV giant Canal+ has ramped up its investment in PCCW’s pan-regional OTT service Viu, bringing its stake in the company to almost 30%. This development follows Canal+’s previous deal struck last year, where it acquired a 26% stake in Viu, marking a significant step in a $300m staged investment plan. The agreement provides Canal+ with the option to potentially acquire a majority (51%) stake in Viu in the future.

Viu, renowned for its extensive Korean content offering, operates across Asia, the Middle East, and South Africa, boasting over 66m monthly active users and 12m paid subscribers. Notably, its lineup includes popular shows like Nenek Bongkok Tiga.

Last year, media research group Omdia highlighted Viu’s dominance in South-Eastern Asia’s OTT video landscape, capturing a 23% market share in online video subscriptions, outpacing competitors such as Disney+ Hotstar and Netflix.

Since its inception in 2016, PCCW-owned streaming service Viu has solidified its position in the region through a strategic focus on providing Asian and localised content, alongside its own Viu Original series. Its subscription and advertising revenue surged significantly last year, with total revenue increasing by 27% and paid subscribers growing by 10% to reach 13.4m. Viu’s subscription revenue witnessed a remarkable 32% surge, attributed to both subscriber growth and pricing adjustments in selected markets.

Viu’s success is further underscored by a 15% increase in advertising revenue and a substantial user base of 62.4m active users by the end of 2023, along with soaring streaming minutes.

Canal+’s enhanced investment in Viu reflects its strategic vision to capitalise on the burgeoning OTT market and tap into Viu’s strong foothold in the Asian and pan-regional streaming landscape, positioning both companies for continued growth and success in the dynamic digital entertainment industry.

Could DStv And GOtv Undergo A Possible Restructure Following Its Possible Acquisition By Canal+?

For several years, Canal+ has progressively increased its ownership of MultiChoice and with them eyeing a possible acquisition of the pay-tv company. Several aspects from both brands come into question and these include their pay-tv services.

Similar to MultiChoice, Canal+ operates various TV channels and platforms within the African stake. With their 35% stake in MultiChoice, they were able to distribute various DStv exclusive content to their pay-tv platforms of the same name.

These included general entertainment brands Africa Magic Epic, Zee World and Telemundo to movies from M-Net Movies 3 and M-Net Movies 4. Even tailor made sports channels SuperSport Premier League and SuperSport La Liga are also added to the lineup. 

Should this acquisition move forward, we're likely to see some consolidation amongst DStv, GOtv and Canal+. Taking to account, they already offer pay-tv services in parts of Europe without the Canal+ trademark we presume DStv could survive in these endeavors. 

From what is understood, MultiChoice Africa isn't profitable as yet and Canal+ could work on making them cost effective. Either scrapping the Canal+ packages and GOtv in favor of DStv or most probably just phasing out Canal+ trademark in some properties. 

Markets in which DStv doesn't exist but Canal+ does will most probably rebrand while those were there's availability of both will probably be structured into separate DStv package if not GOtv.

Canal+ offers a range of entertainment from self titled channels such as Première, Cinema and Docs to third party brands like Game One, English Club TV and France24. Most of which will likely surface on DStv while other brands exit in favor of other TV channels.