Arizona Tribune - Canal+ buyout of S.Africa's MultiChoice one step closer

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Canal+ buyout of S.Africa's MultiChoice one step closer
Canal+ buyout of S.Africa's MultiChoice one step closer / Photo: PIUS UTOMI EKPEI - AFP

Canal+ buyout of S.Africa's MultiChoice one step closer

South Africa's competition authority announced Wednesday it had approved the buyout of Africa's largest pay TV enterprise MultiChoice by France's Canal+, which wants to expand its footprint on the continent.

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The merger, which has been in the works for nearly a year, needs the final go-ahead from the commission's Competition Tribunal, it said in a statement.

Canal+ holds around 45 percent of MultiChoice's shares and offered last year to acquire the remainder for 125 rand (6.16 euro) per share.

Canal+ is present in 25 African countries through 16 subsidiaries and has eight million subscribers, according to the French group.

MultiChoice operates in 50 countries across sub-Saharan Africa and has 19.3 million subscribers, it says. It includes Africa's premier sports broadcaster, SuperSport, and the DStv satellite television service.

"This is a major step forward in our ambition to create a global media and entertainment company with Africa at its heart," Canal+ CEO Maxime Saada said in a statement.

The commission said its approval of the merger was subject to public-interest conditions worth about 26 billion rand over three years, including increasing the shareholding of people disadvantaged under South Africa's white-minority apartheid regime.

It will also maintain the MultiChoice headquarters in South Africa.

A date for the Tribunal's decision on the merger has not been announced but Canal+ said it was aiming for the deal to be completed by early October.

D.Johnson--AT