Vivendi’s French media company, Canal+ , has announced its firm intention to acquire additional shares of South African pay-TV company MultiChoice (MCGJ.J) by April 8, following a ruling by South Africa’s Takeover Regulations Panel.
The panel mandated Canal+ to make a firm intention announcement due to its 35.01% shareholding in MultiChoice, triggering a mandatory offer requirement. Canal+ has respected the decision, securing an exemption from timing requirements and receiving a 25-business day extension from the panel.
Canal+ previously offered to purchase the remaining shares of MultiChoice at 105 rand per share, constituting a 40% premium over MultiChoice’s closing share price of R75 on January 31, 2024.
However, MultiChoice rejected the offer, asserting that it undervalued the company. The board of MultiChoice has emphasized its commitment to act in the best interests of the company and its shareholders.
What you should know
As the biggest shareholder in MultiChoice, Canal+ saw its shares rise by 2.56% at 0840 GMT. MultiChoice, founded in South Africa in 1985, expanded across Africa in the 1990s, offering packages featuring live English football matches and local content.
As the owner of Showmax, a streaming service competing with Netflix in the region, MultiChoice has tapped into Africa’s rapidly growing entertainment market.
Canal+’s bid reflects French billionaire, Bollore’s aim to capitalize on this trend, strengthening the new group’s position in local content and sports.
This development highlights the ongoing dynamics between Canal+ and MultiChoice, two prominent players in the media and pay-TV industry.
The extension granted by the Takeover Regulation Panel points to the regulatory oversight in ensuring fair and transparent dealings in corporate acquisitions.
The final resolution and Canal+’s subsequent actions will be closely watched by stakeholders in the industry as it unfolds over the coming weeks.
