MultiChoice, valued at $2.15 billion, has turned down Canal+’s non-binding offer of R105 per share, which represented a 40% premium on its then-share price.
The pan-African broadcaster, in a statement to shareholders, stated that the proposed offer significantly undervalued the company and its future prospects.
Despite this rejection, Canal+ seems determined in its pursuit of MultiChoice, gradually increasing its stake since 2020. Vivendi, Canal+’s parent company, is experienced in hostile takeovers, having orchestrated at least two similar acquisitions.
Canal+ is actively acquiring more MultiChoice shares, aiming for the 35% limit, as indicated in a recent regulatory filing. South African law dictates that exceeding this threshold would necessitate Canal+ to make a mandatory offer to MultiChoice shareholders.
In response, MultiChoice has sought regulatory guidance on whether a mandatory offer should be extended to all ordinary shareholders, with further updates promised if there are any significant developments.
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