Canal+ Group has made a mandatory offer to acquire all the shares it does not own of South African-based broadcaster MultiChoice.

The 35 billion Rand ($1.9bn) deal would see France’s Canal+ take full control of the African broadcasting and entertainment giant.

5. Multichoice

Canal+ makes offer to buy out Multichoice

Canal+’s offer at 125 Rand per share follows an offer of 105 Rand made on February 1, which MultiChoice rejected as significantly undervaluing the company.

The need to make a mandatory offer was triggered by Canal+, MultiChoice’s biggest shareholder, raising its holding in the firm above the 35% threshold. Canal+ currently holds a 36.6% stake in the company.

Reuters reported that the deal would create a pan-African broadcasting powerhouse with about 31.5 million subscribers across over 50 countries, pointing out that Canal+ has a broad reach in French-speaking African nations, while MultiChoice has a stronger presence in English-speaking countries, including South Africa, Nigeria and Kenya.

Read more Avid appoints Wellford Dillard as CEO

Explaining the deal, Canal+ said that MultiChoice will become “part of a global entertainment leader, with Africa at its heart, which is capable of competing and cooperating with the largest international media companies, streaming platforms and studios.”

It also said the “South African creative and sporting economy will be supported by a local champion with global reach” and that “consumers across Africa will benefit from an enhanced service and product offering, underpinned by technology solutions owned by the combined company.”

Maxime Saada, Chairman and CEO of CANAL+ Group said: “Through combining our companies, we will be well positioned to invest even more in local productions and sports content, supporting the world-leading and vibrant creative ecosystem on the African continent and all over the world, and producing even more high-quality and compelling local stories. The complementary geographies, considerable scale, and strengthened capabilities achieved by the combination of these two great companies will ensure that Africa can tell her own stories on her own terms both locally and globally.”

Read more Sony expands FAST business with launch of 54 channels in Europe