Multichoice’s acquisition by French media company Canal+ has come a step closer with a positive recommendation by the Competition Commission.
The proposed transaction involves Canal+’s acquisition of all the issued ordinary shares of MultiChoice Group that it does not already own, excluding treasury shares, for R125.00 per share, payable in cash.
Today, the companies announced that the South African Competition Commission has recommended that the South African Competition Tribunal approve the proposed transaction, subject to conditions relating to public interest considerations.
The conditions include a package of guaranteed public interest commitments proposed by the parties. The package supports the participation of firms controlled by historically disadvantaged persons and small, micro and medium enterprises (SMMEs) in the audio-visual industry in South Africa.
The package will maintain funding for local South African general entertainment and sport content, providing local content creators with a strong foundation for future success.
The proposed transaction will now be considered by the tribunal.
Maxime Saada, CEO of Canal+, says: “We welcome today’s recommendation from South Africa’s Competition Commission. This is a major step forward in our ambition to create a global media and entertainment company with Africa at its heart.
“We are committed to investing in local content and supporting South Africa’s creative and sports ecosystems. We strongly believe that this transaction is positive for South Africa, providing consumers with greater choice and Africa with a true entertainment champion. We look forward to the transaction being concluded in the near future.”
Calvo Mawela, CEO of MultiChoice Group, comments: “The recommendation from the Competition Commission is a key step forward towards the completion of the transaction and a recognition of the strong package of public interest commitments provided by the parties.
“We look forward to closing the transaction, not only for the benefit of shareholders, but also for the viewing public and the multiple industries that depend on MultiChoice. We will continue to cooperate with all regulatory authorities towards a timely conclusion of this important process.”