Canal+ raises bid for South Africa’s MultiChoice to $2.9bn

AFRICAN BUSINESS AND ECONOMYMarch 9, 2024 at 7:58 PM UTC

TLDR

Canal+ raises offer to acquire MultiChoice to $2.9 billion, now at 125 rand per share
Regulatory directive mandates French broadcaster to extend offer to MultiChoice's ordinary shareholders
Canal+ granted 25-business day extension by South Africa's Takeover Regulation Panel to submit mandatory bid

Canal+, the French pay-TV giant under Vivendi SE's ownership, has raised its offer to acquire MultiChoice to $2.9 billion, following a regulatory directive requiring the French broadcaster to extend an offer to MultiChoice’s ordinary shareholders.

The revised bid amounts to 125 rand per share, marking a 20% increase from the initial proposal of 105 rand, as reported by Bloomberg. MultiChoice is obligated to communicate the new offer to its shareholders as part of its fiduciary responsibility.

The Takeover Regulation Panel (TRP) of South Africa has granted Canal+ a 25-business day extension, expiring on April 8th, to submit a mandatory bid for the purchase of shares in MultiChoice. Canal+ has affirmed its commitment to abide by the panel’s decision and comply with the regulatory requirements.

Key Takeaways

Since 2020, the French company has gradually raised its ownership stake in MultiChoice from 20.1% to 35.01% by February 2023. According to South African regulations, acquiring more than a 35% stake would obligate Canal+ to make a mandatory offer to MultiChoice shareholders. In February, despite MultiChoice's market capitalization standing at $2.15 billion, the company rejected a non-binding acquisition proposal from Canal+. MultiChoice communicated to its shareholders that it deemed the offer undervalued.

Multichoice

Canal+

Canal Plus

PayTV

South Africa