Paris-based Vivendi, which is partially controlled by the Bollore Group and supported by French billionaire Vincent Bollore, has raised its bid for South Africa’s MultiChoice Group. The increased estimate is R55 billion ($2.9 billion), up from the earlier R46 billion ($2.5 billion).
Groupe Canal+ SA (Canal+), Vivendi’s media unit, launched the bid for MultiChoice over a month ago, indicating a strategic move into the African media industry. The initial proposal of R46 billion ($2.5 billion) has been amended to an all-cash offer of R125 ($6.59) per share.
MultiChoice shares gained by 52 percent since the original proposal on Feb. 1, with an additional 4.1 percent on Tuesday.
Canal+ Chairman and CEO Maxime Saada responded via email, “Both companies have mutually agreed to cooperate, and MultiChoice has agreed to give Canal+ exclusivity.” He went on to say, “We know the company well, and we have enough insight into the company’s value to propose this price.”
Vincent Bollore, whose wealth is related to Bollore Group’s interests, has witnessed a considerable jump in his net worth, growing by $104 million to $9.25 billion. This places him as the 264th wealthiest man globally.
Aside from its position in Vivendi, Bollore Group also has assets in Wifirst, an internet service provider. The proposed acquisition exemplifies Vivendi’s strategic aim to strengthen its footprint in the African media scene, with MultiChoice playing a critical role in this development strategy.
As MultiChoice’s largest investor, Vivendi has been buying stock in the South African company, which is recognized for its popular video-streaming service Showmax, a competitor to Netflix Inc. The increased holding triggered local rules, prompting Vivendi to launch a takeover effort.
According to sources familiar with the subject, the French media group is working with JPMorgan Chase & Co. and Bank of America Corp. to make a formal bid that will be due in April.