(Reuters) -An independent board formed by MultiChoice recommended an all-cash mandatory offer made by French media group Vivendi’s Canal+ for the shares it does not already own in the South African broadcaster, the companies said on Tuesday.
The independent board concluded that the terms and conditions of the offer were fair and reasonable to MultiChoice shareholders.
In April, Canal+ made a firm offer of 125 rand in cash per MultiChoice share, meaning it would pay about 35 billion rand ($1.88 billion) for the shares it does not own in a deal that valued the whole company at about 55 billion rand.
Both parties are in the process of assessing and finalising a suitable structure for the licensed activities of MultiChoice Group to ensure compliance with the applicable limitations on foreign control in implementing the mandatory offer.
The deal would create a pan-African broadcasting powerhouse with about 31.5 million subscribers across more than 50 countries, able to put African content to global audiences as well as compete on an international scale.
The French media company 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. ($1 = 18.6373 rand)
(Reporting by Echha Jain in Bengaluru; Editing by Mrigank Dhaniwala)
