DStv, GOtv Sale: MultiChoice Rejects Offer from Firm Owned by French Billionaire, Gives Reasons
- MultiChoice revealed that it had ended negotiations with a French firm seeking to acquire the company
- The pay-tv company said the price offered by Canal+ was lower than the company’s real value
- It said it had ended further talks with Canal+ on the prospects of acquiring the company
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Africa’s largest pay-tv, MultiChoice, has rejected a buyout offer from French media firm Canal+.
The company cited an undervaluation, saying it has ended negotiations with the company, which holds a 30% stake.
Source: UGC
MultiChoice gives reasons for rejecting offer
The French firm offered the remaining MultiChoice shares at about $5.5.
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MultiChoice revealed that a recent valuation placed the company’s worth considerably higher than what Canal+ was offering.
MultiChoice said:
“Following careful consideration, the board concluded that the proposed offer price significantly undervalues the Group and its future prospects.”
“Therefore, we have informed Canal+ that the offer does not provide a basis for further engagement at this price.”
The board of Multichoice did not express readiness for further discussions with Canal+ if the price reflects the company’s actual value.
Canal+ ownership and spread
According to reports, Canal+ is owned by billionaire Vince Balore’s Vivendi group and operates in 25 African countries with 8 million subscribers.
Multichoice, however, has a presence in 50 African countries, with over 23 million subscribers.
Recently, the pay-tv giant increased the subscription prices of its various bouquets, citing high operational costs.
The reviewed price list showed a 20% hike in the company’s packages, which kicked off on November 6, 2023.
Punch reports that the company said the price changes were due to the rise in the cost of business operations.
Nigerians attack MultiChoice over Hike in DStv, GOtv Subscription
Legit.ng reported that telephone and cable television service subscribers have called on the federal government to intervene immediately with the new pricing of paid TV subscriptions.
This is after an earlier report that Multichoice, the South African parent company of Digital Satellite Television (DSTV) and Go Television (GOTV), recently announced a price review.
The reviewed price list showed a 20% hike in the company's packages, which kicked off on November 6, 2023.
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Source: Legit.ng
