Canal+ edges closer to a takeover of JSE-listed broadcaster MultiChoice

Motheo Khoaripe speaks to Duncan McLeod, Founder and Editor at Techcentral.

Earlier this year, Canal+ triggered a mandatory offer under South African rules by buying up more than 35% of MultiChoice.

The French media giant has since bought more shares in MultiChoice, with its stake in the Johannesburg-based broadcaster now standing at 36,6%.

Multichoice shareholders were not convinced by the initial offer made by Canal+ in February. 

Canal+ has now offered MultiChoice shareholders R125/share in cash, above the minimum price of about R105 required by the takeover regulations, in a bid to push through a takeover.

The growth of streaming services like Disney+, Netflix and Amazon Prime is seen as major competitors of Multichoice, so this merger would be regarded as a major coup in terms of attracting viewers on the African continent. 

Speaking to Motheo Khoaripe on The Money Show, Duncan McLeod, Founder and Editor at Techcentral says if the deal goes ahead, MultiChoice could be delisted from the JSE. 

McLeod says if this deal does go through, it'll make MultiChoice the media giant on the African continent. 

However, he adds that there are some significant hurdles they'd have to get over before it can be approved. 

"...getting over the restrictions contained in the Electronic Communications Act...that restriction states that no foreign entity may hold more than 20% of the voting rights of a South African owned broadcaster."

- Duncan McLeod, Founder and Editor - Techcentral

"Many view the African continent as the last great opportunity for media and broadcasting companies to compete and stitch up the market, particularly in the streaming space."

- Duncan McLeod, Founder and Editor - Techcentral

"...both MultiChoice and Canal+ both now saying we'll work together, we'll get the circular out to shareholders. There's definitely been a warming of the relations between the parties."

- Duncan McLeod, Founder and Editor - Techcentral