Groupe Canal+ and JSE-listed MultiChoice Group announced an increase in Canal+’s offer to acquire all remaining shares of MultiChoice that it does not currently hold.
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Canal+, already the largest shareholder in MultiChoice with a 35% stake, has agreed to up its bid to R125 per share, a 19% increase from its previous offer of R105 per share.
After MultiChoice rejected the initial R105 per share offer, Canal+ requested and was granted an extension by the Takeover Regulation Panel to make a mandatory offer to MultiChoice shareholders.
In a statement, MultiChoice informed shareholders of the agreement reached between the two companies. While acknowledging the regulatory minimum price for the mandatory offer at approximately R105 per share, Canal+ has decided to raise the offer to R125 per share.
Both MultiChoice and Canal+ intend to cooperate in this process, with MultiChoice providing customary exclusivity undertakings to Canal+.
Following the mandatory offer, an independent board of MultiChoice will be formed. This board will evaluate the offer, taking into consideration an independent expert’s opinion, and provide its recommendation to shareholders.
MultiChoice’s shares surged by 4.6% on Tuesday to close at R114 each, after ending at R109 the previous day.
However, Canal+’s acquisition efforts may face obstacles, including legislation limiting foreign entities’ voting control in South African broadcasting licensees to 20%. Canal+ has expressed confidence in navigating this restriction and is expected to provide further details when presenting a formal offer to shareholders in the coming weeks.
Additionally, approval from South Africa’s competition authorities will be required, with expectations of an investigation into the deal’s potential impact on competition within the local broadcasting industry.
