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French billionaire’s firm boosts bid for DStv owner, pushing valuation above $2.9 billion

Following the announcement of the increased offer, MultiChoice shares surged by 52 percent since the original bid on Feb. 1, with an additional 4.1-percent increase on Tuesday.

Vincent Bolloré
Vincent Bolloré

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Paris-based Vivendi, partially owned by the Bollore Group and backed by French billionaire Vincent Bollore, has increased its bid for South Africa’s MultiChoice Group. The revised valuation now stands at R55 billion ($2.9 billion), up from the initial R46 billion ($2.5 billion).

Groupe Canal+ SA (Canal+), the media arm of Vivendi, initiated the bid for MultiChoice over a month ago, indicating a strategic move into the African media market. The initial proposal of R46 billion ($2.5 billion) has been adjusted, offering an all-cash deal of R125 ($6.59) per share.

Following the announcement of the increased offer, MultiChoice shares surged by 52 percent since the original bid on Feb. 1, with an additional 4.1-percent increase on Tuesday.

Canal+ Chairman and CEO Maxime Saada conveyed in an emailed response, “Both companies have mutually agreed to cooperate, and MultiChoice has agreed to give exclusivity to Canal+.” He added, “We know the company well, and we have enough insight into the company’s value to propose this price.”

Vivendi’s strategic play in African media — MultiChoice acquisition Puts Bollore Group in the Spotlight

Vincent Bollore, whose wealth is tied to Bollore Group’s interests, has seen a significant uptick in his net worth, rising by $104 million, bringing his current net worth to $9.25 billion, solidifying his position as the 264th wealthiest individual globally.

Apart from Bollore Group’s stake in Vivendi, the conglomerate also holds investments in the internet service provider Wifirst. The proposed acquisition highlights Vivendi’s strategic vision to strengthen its presence in the African media landscape, with MultiChoice being a crucial asset in this expansion trajectory.

As MultiChoice’s largest investor, Vivendi has been acquiring stock in the South African company, known for its popular video-streaming service Showmax, a rival to Netflix Inc. The increased holding triggered local regulations necessitating Vivendi to make a takeover bid.

The French media company is collaborating with JPMorgan Chase & Co. and Bank of America Corp. to prepare a formal offer due by April, according to sources familiar with the matter.

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