21st May 2025 11:43
(Alliance News) - MultiChoice Group Ltd on Wednesday announced a positive opinion from South Africa's competition regulator on its proposed acquisition by Canal+ SA.
In response, shares in MultiChoice jumped 4.8% to ZAR117.38 early on Wednesday afternoon in Johannesburg. Canal+ shares were up 1.0% at 197.00 pence in London.
MultiChoice said it and Canal+ were pleased to advise shareholders that the South African Competition Commission has recommended that the South African Competition Tribunal approve the proposed transaction.
Approval, MultiChoice noted, would be subject to conditions including a package of guaranteed public interest commitments proposed by the parties. This would support the participation of firms controlled by historically disadvantaged persons and small, micro & medium enterprises in South Africa's audiovisual industry.
"This package will maintain funding for local South African general entertainment and sport content, providing local content creators with a strong foundation for future success," MultiChoice said.
The planned deal will see Paris-based media and telecommunications conglomerate Canal+ take over the South African entertainment company. Its mandatory offer to MultiChoice shareholders opened early in June last year, when Canal+ improved its offer to ZAR125 per share - a 67% premium to MultiChoice's closing price of ZAR75 before Canal+ first approached MultiChoice investors on February 1, 2024.
Then in early April, MultiChoice and Canal+ said they were on track to clear all conditions for the proposed transaction.
On Wednesday, MultiChoice's Chief Executive Officer Calvo Mawela commented: "The recommendation from the Competition Commission is a key step forward towards the completion of the transaction and a recognition of the strong package of public interest commitments provided by the parties.
"We look forward to closing the transaction, not only for the benefit of shareholders, but also for the viewing public and the multiple industries that depend on MultiChoice. We will continue to cooperate with all regulatory authorities towards a timely conclusion of this important process."
Canal+ CEO Maxime Saada, meanwhile, called the recommendation "a major step forward in our ambition to create a global media and entertainment company with Africa at its heart".
"We are committed to investing in local content and supporting South Africa's creative and sports ecosystems," he continued. "We strongly believe that this transaction is positive for South Africa, providing consumers with greater choice and Africa with a true entertainment champion. We look forward to the transaction being concluded in the near future."
By Emma Curzon, Alliance News reporter
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