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French media giant Canal Plus is confident that South African authorities will at least not block its partnership with DStv owner MultiChoice, and signalled growing confidence that their joint efforts could help seal a deal to create a global entertainment company “with Africa at its heart.”
The parties issued a joint circular on Tuesday, which included a recommendation to accept a R125 per share offer from MultiChoice's independent board and independent expert Standard Bank. The bank concluded that a fair and reasonable price for the owners of DStv and Showmax would be about R120, above the company's current share price, but any deal still faces hurdles, including restrictions on black ownership and foreign ownership.
Canal+ Chairman and CEO Maxime Saada, speaking at a press conference after the announcement, said the backing for the proposal was “a very formal vote of support from our independent board of directors” and should help allay any hesitation Showmax's owners may have had about setting up the legal and corporate structure needed to get through regulatory hurdles.
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