Africa’s pay-TV operator MultiChoice, has 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.
Key points considered by the Board include:
- Valuation Exercise: MultiChoice recently conducted a valuation exercise, indicating a valuation significantly above R105 per share.
- Exclusion of Synergies: MultiChoice’s valuation did not account for potential synergies arising from the proposed acquisition, a factor Canal+ emphasized during discussions.
Consequently, the MultiCgoice board, in its commitment to maximising shareholder value, communicated to Canal+ that the proposed price does not warrant further engagement.
The company said shareholders are no longer urged to exercise caution when dealing in their securities.
However, the board remains open to discussions with any party offering a fair price and subject to appropriate conditions. It reaffirms its commitment to adhering to the Takeover Regulations governing any formal and binding offer.
Important Notice Regarding Voting Rights:
Additionally, shareholders are advised that MultiChoice may reduce the voting rights of shares held by foreigners to South Africa to ensure compliance with statutory requirements. The provision aims to limit the aggregate voting power of foreign-owned shares to 20% of the total voting power in MultiChoice.
Under this provision:
- Shares deposited via the MultiChoice ADS facility are presumed to be owned by foreigners.
- Shareholders with addresses outside South Africa are presumed to be foreigners unless they can prove otherwise to the satisfaction of the MultiChoice board.
The Board assures shareholders that it will continue to act in the best interests of the company while upholding regulatory compliance.
Also read: France’s Canal+ Group Finally Pursues MultiChoice Takeover
