Canal+ Group from France has increased its ownership in MultiChoice from 31.07% to 35.01%, despite a prior rejected takeover offer.
According to section 122(3)(b) of the Companies Act, 71 of 2008, regulation 121(2)(b) of the Companies Regulations, 2011, and paragraph 3.83(b) of the JSE Limited Listings Requirements, MultiChoice shareholders are formally notified of this development.
MultiChoice has duly filed notices with the Takeover Regulation Panel (TRP) and the Companies and Intellectual Property Commission, as per sections 122(3)(a) and 122(3A) of the Act, respectively. Moreover, MultiChoice has requested the TRP to adjudicate on the necessity of a mandatory offer to all ordinary shareholders under section 123 of the Act. Subsequent updates will follow as events unfold.
Last week,, Canal+, having steadily acquired a notable stake in the JSE-listed MultiChoice Group over recent years, announced it was currently advancing to assume control of the South African pay-television conglomerate. However, the deal must maneuver through stringent South African media ownership regulations to gain approval.
Canal+ announced on Thursday that is expects to offer R105 per share for MultiChoice, or a 40% premium to the closing price on 31 January 2024.
The French compamy already owns 31.7% of MultiChoice’s shares.
Canal+ Group’s move to take control of MultiChoice Group in South Africa reflects its strategic expansion into the African pay-television market. MultiChoice Group, known for its DStv service, is a major player in the African broadcasting and entertainment industry, and its acquisition would offer Canal+ Group a significant foothold in the region.
South Africa, like many countries, has laws and regulations governing media ownership to ensure diversity, competition, and local content production in the broadcasting sector. Any acquisition of a major media group like MultiChoice would likely face scrutiny and regulatory approval processes to ensure compliance with these regulations.
For more read: France’s Canal+ Group Finally Pursues MultiChoice Takeover
However, MultiChoice today firmly rebuffed a non-binding acquisition proposal from Group Canal+ SA (“Canal+”) at a proposed price of R105 per share in cash.
Shareholders were informed of this through a cautionary announcement released on SENS on 1 February 2024.
The proposal, which arrived after extensive discussions between Canal+ and MultiChoice spanning over a year, was met with deliberation by the MultiChoice board.
Despite Canal+’s public assertions regarding the potential advantages of a combined entity, MultiChoice said the board concluded that the offer significantly undervalues MultiChoice and its future prospects.
For more read: MultiChoice Rejects Canal+’s Acquisition Proposal At R105 Per Share
