MultiChoice and Canal+ come to cooperation agreement amid acquisition

MultiChoice Group appears increasingly receptive to a potential buyout by Canal+, as recent developments reveal that the French company has further increased its stake in the JSE-listed broadcaster.

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On Monday, MultiChoice informed investors of its decision to collaborate closely with Canal+ regarding a mandatory offer that Canal+ is required to extend to MultiChoice shareholders. This decision follows Canal+’s acquisition of over 35% of MultiChoice’s equity earlier this year, triggering the mandatory offer under South African regulations.

Under the “cooperation agreement,” both broadcasting giants will endeavour to cooperate in various aspects related to the offer, including fulfilling offer conditions and publishing a combined offer circular, MultiChoice stated.

Meanwhile, Canal+ has continued purchasing MultiChoice shares in the open market, boosting its stake to 36.6%. Canal+ has previously announced its intention to offer MultiChoice shareholders R125/share in cash, a price significantly exceeding the minimum requirement of approximately R105 stipulated by takeover regulations, according to MultiChoice.

If the transaction is not finalized by April 8, 2025, including obtaining necessary regulatory approvals, it could be terminated. However, this “long-stop date” may be extended with the approval of South Africa’s Takeover Regulation Panel, which oversees the mandatory offer process.

As part of the regulatory requirements, MultiChoice has established an independent board to assess the fairness and reasonableness of Canal+’s offer.

If accepted by shareholders holding at least 90% of eligible MultiChoice shares, Canal+ reserves the right to delist MultiChoice from the JSE. However, Canal+ has indicated a potential opportunity for South African investors to participate in its proposed listing in Europe.

Canal+ plans to provide an opportunity for South African investors to become shareholders of the combined entity through a secondary inward listing on the JSE, should its European listing proceed as planned. MultiChoice and Canal+ aim to distribute a combined circular to MultiChoice shareholders by May 7.