More than 100 people and the French ambassador to South Africa, David Martinon, were at the JSE this morning as media giant Canal+ became the first French company to list following its purchase of MultiChoice last year for $3 billion (R52.2 billion at the time).
Unlike other JSE debuts, no new shares were issued. Instead, potential shareholders were buying its London-listed shares in pound sterling, as the London Stock Exchange (LSE) remains its primary listing.
CEO Maxime Saada, who has held the position since 2015, told Canal+ and JSE executives, guests and members of the media: “We become the only media and entertainment group to be listed on the JSE, and it is a privilege to be here today as Canal+ begins a new chapter in Africa.”
Saada said Canal+ has been present in Africa for over 30 years, operating in 40 countries across Africa, where it provides content in 50 different languages to a combined 23 million viewers – more than 50% of its total base across Europe, Africa and Asia.
“This is why today, it is not only a new listing on the JSE, it is a statement of our ambition, of our belief in Africa’s growth, and its dynamic creative industry. In the very early stage of our acquisition of MultiChoice, we made the choice to list on the JSE. Listing here aligns our capital, our governments and our creative resources with African investors, partners and audiences.”
At the open
Saada noted: “Our hope is for this listing to enhance the liquidity of our shares, to broaden our shareholder base, and to support our growth ambitions.”
Canal+ shares closed at £2.55 (R55.87) on the LSE yesterday, down 3.18% from Monday’s close, making the company worth £2.5 billion – R55 billion at this morning's exchange rate of R21.91.
Following the blowing of the Kudu horn at 9am to mark the opening of the market and Canal+ stock being made available to South African investors, its shares were ahead of the London price.
Stock was being bought and sold at R58.50 just after the market opened and, at one point, the CNP shares hit R59.
Chief officer of capital markets Helina Andhee, speaking in French and English, said Africa's oldest bourse marked “a truly historic occasion” as Canal+ made its inward listing.
Peter Takaendesa, chief investment officer at Mergence Investment Managers, explains that the fast-tracked inward listing means that shares traded in Johannesburg and London are effectively the same, and systems are in place to move them between the two markets when needed.
Takaendesa notes the stock should largely follow the London valuation, considering exchange rate movements. “If one finds the investment case attractive compared to other opportunities on the JSE, then buying the shares and voting your rights won't be major issues technically.”
Beyond the Kudu horn
JSE chairman Phuthuma Nhleko told the assembled guests that this particular listing reflects the continuous strengthening of the links between global markets and the growing investment opportunity in Africa. “The listing is a recognition that Africa remains a very important part of the world's long-term growth story.”
Nhleko added that such inward listings reflect the confidence in South African and African markets. “This listing in particular is meaningful in the South African context because it ensures and preserves participation of all investors, which is fundamentally important.”
The South African Reserve Bank's Financial Surveillance Department classified the Canal+ listing as domestic, allowing local investors and retirement funds to continue holding and trading their shares without affecting foreign investment limits, noted Nhleko. The move also gives South Africans exposure to Canal+'s international operations beyond Africa, he said.
Standard Bank, which acted as joint financial advisor and transaction sponsor to Canal+, says in a statement that, while no new shares were offered or issued, “the listing is expected to enhance the long-term liquidity and tradability of Canal+ shares and broaden the company's shareholder base”.
The big-four bank says the listing strengthens the JSE’s international profile, reinforces Johannesburg’s role as a gateway to African capital, and aligns Canal+’s market presence with its expanded African footprint following the acquisition of MultiChoice.
Meet the Bollorés
However, Takaendesa notes the Bolloré Group already controls 34% of the vote. This French conglomerate, founded in 1822, is listed in Paris but majority-controlled by the Bolloré family.
It operates globally across three core business divisions: transportation and oil logistics, media and communications, and specialised industry.
The Bolloré family is a prominent French business dynasty from Brittany and belongs to the Breton bourgeoisie, but was originally a family of fishermen, according to Wikipedia.
The family is best known because of Vincent Bolloré – described as being "aggressive" when M&A deals are involved – who led the family-controlled Bolloré Group until his technical retirement at 72 in 2022.
The deal that wouldn't die
“What you're witnessing this morning is a culmination of a three-year journey. Three years ago, when Canal+ set its sights on MultiChoice… a commitment was made that Canal+ would list on the JSE so that South African investors would be able to be part of its global growth journey. That journey presented its challenges, yet Canal+ remained committed,” Andhee said.
Canal+ had to overcome several hurdles to complete its roughly $3 billion acquisition of MultiChoice − including foreign ownership restrictions on broadcasters, competition scrutiny over a historic decoder supply agreement and resistance from MultiChoice's board − before a final R125-a-share deal was reached.
The French broadcaster also inherited a company grappling with subscriber losses, inflation, currency weakness and losses at Showmax, while committing to a R2 billion package of public-interest measures, including support for local content, historically disadvantaged groups and a three-year moratorium on retrenchments.
Canal+ and the Competition Tribunal agreed it would make an inward listing before it completed its acquisition of MultiChoice after building a stake from 2020 and making a formal offer in early 2024. The company, which listed on the LSE last year, facilitated the listing through creating a separately structured South African entity.
It’s time for Africa
Canal+’s pursuit of MultiChoice was driven by its ambition to expand across Africa, giving the French media group a footprint in more than 50 countries, millions of pay-TV subscribers, extensive local content operations and premium sports rights.
Detailing its ambitions, Saada said: “When it comes to growth ambitions, I can promise you one thing: we are just getting started. We are determined to reach 50 million subscribers, even possibly 100 million subscribers in the future. There is no other company in the world like Canal+.”
Saada noted that Canal+ is now operating at scale, with €9 billion in revenue, more than €700 million in profit and over 40 million subscribers.
MultiChoice, which reported in 2024 the loss of almost three million subscribers over two years, contributed €683 million (about R13 billion) in revenue and €103 million (about R2 billion) in adjusted earnings before interest and tax during the three months it was included in Canal+’s results for the year to December.
Canal+ has since unveiled a nearly R2 billion turnaround plan aimed at reigniting subscriber growth and repositioning MultiChoice for long-term expansion. The group expects to generate €250 million (R4.79 billion at the then exchange rate of R19.17) in synergies from the combination – €100 million more than its initial estimate – and says the enlarged business now serves 28 million subscribers.
Abax Investments portfolio manager Steve Minnaar says Canal+ may be able to run a more efficient business, but cautions that managing numerous African currencies and regulators will remain a challenge, while early cuts to some sports rights spending have proved unpopular.
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