Canal+ Group, a French TV channel, has offered to buy all the shares in South Africa’s MultiChoice for $1.69 billion.
According to Reuters, Canal+, in a statement on Thursday, said it has already submitted a proposal to this effect.
Canal+, a top shareholder in MultiChoice with a 31.67 percent stake, according to data on London Stock Exchange Group (LSEG), said it would likely pay 105 rand in cash per share—a 40 percent premium to MultiChoice’s closing share price on Wednesday.
The French firm said its offer, worth 31.7 billion rand ($1.69 billion), was non-binding and indicative.
The company is expected to deliver a letter of firm intention to MultiChoice’s board once due diligence has been completed.
“MultiChoice to continue to thrive in Africa, it will require a strategy that enhances its scale as well as strengthens local and global expertise,” Maxime Saada, chairman and chief executive officer (CEO) of Canal Plus, said in a statement.
“Our potential offer, if successful, would be an important next step for MultiChoice to realise its full potential.”
Confirming the development, MultiChoice, which operates in 50 countries in sub-Saharan Africa, said it had received a letter from the French media company and would update shareholders on any developments.
Canal+ is a subsidiary of Vivendi SE, a French mass media holding company headquartered in Paris.
