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French Firm Makes $2.5 Billion Bid for MultiChoice

Vivendi, a Paris-based media holding company partly owned by Bollore Group, led by French billionaire Vincent Bollore, has made a bid to acquire the shares of South African pay-TV company MultiChoice Group, the parent company of the well-known Sub-Saharan African direct broadcast satellite service, DStv.

The proposed transaction, at R46 billion ($2.5 billion), represents Vivendi’s strategic expansion into the African media industry. Vivendi’s media subsidiary, Groupe Canal+ SA (Canal+), has announced its desire to acquire the remaining ordinary shares in MultiChoice, excluding any treasury shares.

The offer, estimated at R105 ($5.65) per MultiChoice ordinary share, is a significant 48 percent premium to MultiChoice’s final closing price of R75 ($4.030 per share on January 31).

After the news, MultiChoice’s share price increased by 27.47 percent on the Johannesburg Stock Exchange, ending at R95.6 ($5.14) on Thursday, February 1. This jump increased the group’s market valuation to R42.02 billion ($2.26 billion), indicating investor confidence in the probable acquisition.

Vivendi’s proposed merger intends to combine its local Canal+ operations with MultiChoice, creating a behemoth with almost 50 million users across Africa. The united organization is prepared to use increased resources to invest in local programming and sports, giving it a competitive advantage in the changing media landscape.

Canal+ Chairman and CEO Maxime Saada stressed the importance of scale in competing against global competitors, notably American peers proficient at leveraging online platforms. Saada went on to say, “To face these giants you need to be able to invest in content and technology, and to that, you need scale.”

Bollore’s net worth, which originates from his stakes in Bollore Group, has increased significantly this year, reaching $99.1 million.

With this increase, his net worth now stands at $9.55 billion, making him the 239th richest person in the world. In addition to its interest in Vivendi, the Bollore Group invests in Wifirst, an internet service provider.

The proposed acquisition exemplifies Vivendi’s strategic aim of strengthening its position in the African media scene, with MultiChoice emerging as a critical asset in the company’s growth trajectory.

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