MultiChoice and Canal+ Agree in Takeover Deal

MultiChoice Shows Growing Interest in Canal+ Buyout Amidst Increased Share Acquisition. Learn more.

MultiChoice Group announced a ‘cooperation agreement’ with Canal+, whereby both broadcasting giants commit to ‘reasonable endeavors’ to collaborate concerning the offer. This collaboration also includes some aspects such as fulfilling offer conditions and publishing a unified offer circular.

On Monday, MultiChoice informed investors that it will collaborate closely with Canal+ on a mandatory offer mandated by South African regulations, following Canal+’s acquisition of over 35% of MultiChoice’s equity earlier this year, triggering the requirement for the offer.

However, reports have revealed the French company’s continued purchase of additional shares in the JSE-listed broadcaster in recent weeks. Canal+ has also continued to buy up MultiChoice shares in the open market, with its stake now standing at 36.6%.

Previously, Canal+ had announced its intention to offer MultiChoice shareholders R125 per share in cash, an amount which is ‘significantly above’ the minimum price requirement of approximately R105 per share in cash mandated by takeover regulations, as stated by the JSE-listed broadcaster.

If the deal, including getting regulatory approvals, isn’t done by April 8, 2025, it could be called off. This ‘long-stop date’ can be pushed back with approval from South Africa’s Takeover Regulation Panel – the financial regulator in charge of the mandatory offer.

As per legal requirements, MultiChoice has also established an independent board to evaluate the fairness and reasonableness of the Canal+ offer.

MultiChoice Delisting

If the deal goes well as planned and at least 90% of eligible MultiChoice shareholders agree, MultiChoice may be delisted from the JSE, potentially impacting South Africa’s stock exchange.

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However, Canal+ has indicated a possibility for South African investors to participate in its European listing. If Canal+’s listing occurs before the offer closes, they may revise the terms to include exposure to the combined entity for MultiChoice shareholders.

MultiChoice and Canal+ plan to send a combined circular to MultiChoice shareholders by May 7, 2024.

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