Canal+ Moves Forward with MultiChoice Acquisition Offer

MultiChoice and Groupe Canal+ have announced that the French media company plans to buy all the remaining shares of the South African pay-TV provider it doesn’t already own for R125 per share. 

This move follows the next step in the Takeover Regulation Panel’s (TRP) regulatory process. MultiChoice’s independent board has backed the offer, should it become unconditional.

Previously, Canal+ owned 35% of MultiChoice but has been increasing its stake by purchasing shares on the open market. As of April, Canal+ holds 40.8% of MultiChoice.

To buy all remaining shares, Canal+ will need to spend over R30 billion. If Canal+ surpasses a 50% stake in MultiChoice, the Competition Commission might investigate the deal.

Both companies are working on a framework to ensure compliance with foreign control regulations and to maintain MultiChoice’s Broad-Based Black Economic Empowerment (BBBEE) credentials. 

The R125 per share offer is a 66.66% premium over the current share price and a 63.96% premium over the 30-day average price before the notice of the bid.

Canal+ and MultiChoice emphasised that they see South Africa’s economic reform and BBBEE as mutually beneficial goals.

Hi, I’m Damife Isaac

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