French billionaire Vincent Bollore’s firm makes $2.5-billion bid for DStv owner

Vivendi, a Paris-based mass media holding company partially owned by Bollore Group, led by French billionaire Vincent Bollore, has made a bid to acquire the shares of South African pay-TV company MultiChoice Group, the parent company of the widely known Sub-Saharan African direct broadcast satellite service, DStv.

The proposed deal, valued at R46 billion ($2.5 billion), signals Vivendi’s strategic move to expand its presence in the African media market. Vivendi’s media arm, Groupe Canal+ SA (Canal+), revealed its intention to acquire the remaining ordinary shares in MultiChoice, excluding any treasury shares.

The offer, estimated at R105 ($5.65) per MultiChoice ordinary share, represents a noteworthy 48-percent premium to MultiChoice’s last closing price of R75 ($4.030 per share on January 31.

MultiChoice soars 27.47 percent after acquisition news: market capitalization hits $2.2 billion

Following the announcement, MultiChoice’s share price surged by 27.47 percent on the Johannesburg Stock Exchange, closing at R95.6 ($5.14) on Thurs., Feb. 1. This surge elevated the group’s market capitalization to R42.02 billion ($2.26 billion), reflecting investor optimism regarding the potential acquisition.

Vivendi’s proposed takeover aims to amalgamate its local Canal+ operations with MultiChoice, envisioning a conglomerate boasting nearly 50 million subscribers across Africa. The combined entity is poised to leverage enhanced resources for investment in local content and sports, fostering a competitive edge in the evolving media landscape.

Canal+ Chairman and CEO Maxime Saada emphasized the significance of scale in confronting global competitors, particularly from American counterparts adept at leveraging internet platforms. Saada articulated, “To face these giants you need to be able to invest in content and technology, and to that, you need scale.”

Bollore’s wealth jumps to $9.55 billion amid strategic moves in African media landscape

Bollore, whose wealth stems from his interests in Bollore Group, has witnessed a notable increase in his net worth, amounting to $99.1 million thus far in the year.

This surge brings his current net worth to $9.55 billion, securing his position as the 239th wealthiest individual globally. Apart from Bollore Group’s stake in Vivendi, the conglomerate also maintains investments in internet service provider Wifirst.

The proposed acquisition underscores Vivendi’s strategic vision to fortify its foothold in the African media landscape, with MultiChoice emerging as a pivotal asset in the company’s expansion trajectory.