Patrice Motsepe, the South African billionaire, is set to team up with Vivendi SE’s Canal+ for a multibillion-dollar bid for broadcaster MultiChoice Group. Motsepe became Africa’s first Black billionaire in 2008 and built his fortune in the mining industry through African Rainbow Minerals (ARM)
Following Multichoice refusal to entertain Canal + initial bid, there seems to be a positive turnaround with the involvement of South Africa’s wealthiest man in helping the French media conglomerate fulfil the country’s rigorous Black ownership criteria.
African Rainbow Capital, the spokespersons for Canal+ and Motsepe’s investment firm, remain silent the collaboration’s outcome. However, speculation says discussions are in preliminary stages, with no certainty of agreement.
Canal+ holds the highest stake, exceeding 35% in MultiChoice, the largest pay-TV company in South Africa, thereby prompting a compulsory takeover bid.
The French man’s successful ownership of the largest pay-TV company in South Africa allow gives broader access to have African markets.
However, JPMorgan Chase and Bank of America advise Canal+ to make a formal offer for MultiChoice before April 8 for consideration by the board’s independent members. Canal+ is set to offer 125 rand a share, valuing the company at about 55 billion rand ($2.9 billion).
MultiChoice was formed in South Africa in 1985 and has expanded across Africa in the early 1990s with various packages, including live English football matches and local shows. The company also owns Showmax, the popular video-streaming service and Netflix Inc. rival.
Multichoice has been relentlessly warding off competition from multinationals such as Netflix and Amazon while offering its services to over 50 African countries. Enough is evident in MultiChoice’s campaign of investing in local content.
The CEO and Chairman of Canal+ noted that this acquisition would equip Multichoice with the resources to double down on local content investment. He further mentioned that the primary goal of the acquisition is to combine its local Canal+ operations with MultiChoice to create a group of 50 million subscribers and resources to invest more in local content and sports.
