MultiChoice, a pay-TV company listed on the Johannesburg Stock Exchange (JSE), and Canal+, a French media giant, have joined forces to navigate through Canal+’s mandatory offer to buy MultiChoice shares.
This collaboration follows Canal+’s acquisition of over 35% of MultiChoice’s equity earlier this year, triggering the mandatory offer required by South African regulations.
Recent updates reveal that Canal+ has further increased its stake in MultiChoice, now owning 36.6% of the company. The partnership aims to ensure a smooth process for fulfilling the offer conditions and publishing a combined offer circular.
The South African Takeover Regulation Panel mandated Canal+ to make an offer for the remaining MultiChoice shares, setting a minimum price of R105 per share.
However, Canal+ has exceeded this by offering R125 per share, almost 67% higher than MultiChoice’s share price before the initial offer in February.
Originally, Canal+ had until April 8 to finalise the buyout, but this deadline may be extended with approval from the South African Takeover Regulation Panel.
MultiChoice has formed an independent board to oversee the fairness of Canal+’s offer, with Standard Bank of South Africa Limited appointed as an independent expert to assess the terms.
If the deal goes through, Canal+ reserves the right to delist MultiChoice from the JSE, potentially impacting the stock exchange. However, Canal+ proposes a secondary inward listing on the JSE for South African investors, should its planned European listing proceed.
This collaboration marks a significant development in the media landscape, potentially reshaping the future of MultiChoice and its presence in South Africa’s entertainment industry.
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