By Nqobile Dludla
JOHANNESBURG (Reuters) -French media group Canal+ on Monday announced a new board to steer South African broadcaster MultiChoice after taking control of the company through a 35 billion rand ($2.02 billion) acquisition.
The takeover gives Canal+ a dominant foothold in Africa’s fast-growing pay-TV market, where MultiChoice operates across 50 countries. It also marks a major step in Canal+’s strategy to become a top five global entertainment player, its CEO Maxime Saada said on a media call.
The combined group will serve more than 40 million subscribers across nearly 70 countries in Africa, Europe and Asia.
Canal+ owned 46% of MultiChoice as of September 19, with another 2.2% of shares tendered in its favour since, giving the London-listed company effective control of the TV broadcaster, the companies said on Monday.
The shares still to be tendered into the offer, which is now unconditional, will further increase Canal+’s stake.
MultiChoice implemented a reorganisation of its South African operations this month in line with conditions laid out by South Africa’s Competition Tribunal in July to approve the takeover.
The MultiChoice group board now includes four new directors, including David Mignot as CEO and Nicolas Dandoy as Chief Financial Officer. Saada will become the chair, the companies said.
Outgoing MultiChoice Group CEO Calvo Mawela has been appointed as the chair of Canal+’s African operations, which includes MultiChoice. Mignot and Dandoy will respectively be CEO and CFO of Canal+ Africa.
The outgoing MultiChoice CFO, Timothy Jacobs, will continue to hold a senior position in the combined group’s finance department, the companies said.
A more detailed update on the combined group’s strategy will be provided in the first quarter of next year, Saada added. MultiChoice’s partnership with U.S. media conglomerate Comcast will continue.
($1 = 17.3354 rand)
(Reporting by Nqobile Dludla in Johannesburg, adding reporting by Raechel Thankam Job in Bengaluru; Editing by Mrigank Dhaniwala and Jan Harvey)
