By The Competition Commission Tribunal in South Africa has approved the take-over deal worth more than R30 billion by Canal+ over giant pay-TV MultiChoice Group (MCG) with conditions.
The French company has made an offer to acquire all ordinary shares of MultiChoice Group, excluding treasury shares from MultiChoice shareholders at a rate of R125 per share. According to the Tribunal, Canal+ is a firm whose activities include the production, commissioning and supply of audio-visual content to broadcasters in South Africa, including MCG.
The Tribunal says MCG is also involved in, amongst others, the production, commissioning and supply of audio-visual and sports content. This content is supplied to MCG’s subsidiary, MultiChoice (Pty) Ltd (“LicenceCo”), which operates the DStv pay-tv broadcasting platform. LicenceCo will be carved out of MCG prior to the implementation of the proposed transaction.
The Competition Commission Tribunal has approved the take-over deal with conditions subject to public interest. The conditions include:
• Employment protection by placing a moratorium on any merger-specific retrenchments for three years; • Supplier development over three years, with focus on expenditure on local content and procurement from small, medium and micro enterprises and historically disadvantaged persons; • Canal+’s secondary listing on the Johannesburg Stock Exchange and the merged entity’s continued operation from South Africa; • Plurality of television news; • Export promotion; and • Greater access to international sporting events involving South Africa.
“The commitments in excess of R30 billion required of the merged entity will ensure the merger has a significant positive impact in South Africa. In particular, the committed expenditure on local content will create vast opportunities for content creators,” said the Deputy Commissioner Hardin Ratshisusu.
Maxime Saada, the CEO of CANAL+ expressed excitement over the deal and said the conditional approval by the Tribunal is a step in the right direction towards them concluding the deal on the set deadline and participate in the African market.
“The approval by South Africa’s Competition Tribunal marks the final stage in the South African competition process and clears the way for us to conclude the transaction in line with our previously communicated timeline. It is a hugely positive step forward in our journey to bring together two iconic media and entertainment companies and create a true champion for Africa.
I’m excited about the potential this transaction unlocks for all stakeholders, notably South African consumers, creative businesses and the nation’s sporting ecosystem. The combined Group will benefit from enhanced scale, greater exposure to high-growth markets and the ability to deliver meaningful synergies,” said Saada.
Calvo Mawela, the CEO of MultiChoice Group has welcomed the approval by the Commission’s Tribunal.
“The announcement marks a significant milestone and is a major step forward for both companies. It reflects the strength of our strategic vision and our on-going commitment to continue uplifting the communities where we operate. We look forward to executing the remaining processes required to complete the transaction and to start building something extraordinary: a global media and entertainment company with Africa at its heart,” said Mawela.
