Canal+ is moving ahead with its plans for a secondary inward listing on South Africa’s main bourse as the French entertainment firm takes control of MultiChoice Group.
As part of the process, Canal+ will first delist MultiChoice from the Johannesburg Stock Exchange, the company said in a statement on Monday. It will then start a secondary inward listing by introduction, giving South African investors access to the larger pay-TV and streaming business.
“We want our new company double listed, which was a big reason for our London listing of Canal+,” Chief Executive Officer Maxime Saada said in an interview. “This is because there is a fast-track process when you are listed in London to go to the JSE.”
In December last year, Vivendi SE listed Canal+ in London to assist the business with its plans to further expand. The combined operation will create a group with almost 40 million subscribers and the resources to invest more in local content and sports.
Formed in South Africa in 1985, MultiChoice expanded across the continent in the early 1990s with packages including live English football matches and local shows.
The company was spun off from Naspers in 2019 and offers the French broadcaster access to additional markets including South Africa, which has the continent’s biggest economy and film-making hub. Canal+’s transaction values MultiChoice at about $3 billion.
Canal+ now holds 94.4% of MultiChoice and plans to “squeeze out” the remaining shareholders, said Saada.
“Before year end, MultiChoice will be delisted and then we will launch the secondary listing of Canal+ in Johannesburg.”
Shares in MultiChoice rose 4.5% at 10:21 a.m. in Johannesburg, while Canal+ was up 1% in London.
Saada said the group had committed to listing in Johannesburg within nine months of delisting MultiChoice, which meant the secondary listing, which will give the group access to a broader range of shareholders, will be done before or by September next year.
BLOOMBERG