Vivendi to Weigh a Higher Bid for South Africa’s MultiChoice – Hindustan Times

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(Bloomberg) — Vivendi SE’s Canal said it increased its bid for South Africa’s MultiChoice Group Ltd. to 125 rand a share, valuing the firm’s shares at 55 billion rand ($2.9 billion). 
The new all-cash offer will see the two companies enter “exclusive” talks on the deal, Canal Chairman and Chief Executive Officer Maxime Saada said in an emailed response to questions. The higher bid follows pushback from MultiChoice on Vivendi’s earlier offer of 105 rand per share.
“On this basis, both companies have mutually agreed to co-operate, and MultiChoice has agreed it will give exclusivity to Canal ,” Saada said.
The French media company is working with JPMorgan Chase & Co. and Bank of America Corp. to prepare a new offer due by April, the people said, asking not to be identified because the deliberations are private. 
Read More: Vivendi Bids For Africa’s MultiChoice at $2.5 Billion Value 
Vivendi has been buying up stock in the African broadcaster, which owns the popular video-streaming service and Netflix Inc. rival Showmax. The French company is now MultiChoice’s largest investor, and its holding size has triggered local regulations that require it to make a takeover bid. 
MultiChoice’s second-largest investor is the Public Investment Corp, which manages the bulk of the South African government employees’ pension money. Citigroup Inc. and Morgan Stanley are acting as MultiChoice’s financial advisers, said the people. 
Representatives for JPMorgan, Bank of America, Citigroup and Morgan Stanley declined to comment. 
Formed in South Africa in 1985, MultiChoice expanded across Africa in the early 1990s with packages including live English football matches and local shows. The company was spun off from Naspers Ltd. in 2019 and offers the French broadcaster access to a continent with the world’s fastest-growing and youngest population.
Saada said the company remains firmly committed to a Johannesburg Stock Exchange listing, supporting transformation, and maintaining MultiChoice’s status on broad-based Black economic empowerment.
Vivendi aims to combine its local Canal operations with MultiChoice creating a group with almost 50 million subscribers and the resources to invest more in local content and sports. 
–With assistance from Benoit Berthelot.
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