MultiChoice turns down $2.5bn purchase offer from Canal+
- MultiChoice rejects acquisition proposal from Canal+, valuing the company at $2.15 billion.
- The offer of R105 per share represents a 40% premium on MultiChoice's then-share price.
- MultiChoice believes the offer significantly undervalues the company and its future potential for growth and prosperity.
MultiChoice, the pan-African broadcaster valued at $2.15 billion, has declined a non-binding acquisition proposal from Canal+, the Vivendi-owned pay-TV company. The offer, priced at R105 per share, represented a 40% premium on MultiChoice's then-share price.
In a statement to shareholders, MultiChoice stated its decision not to entertain the offer after careful deliberation by the Board. The company asserted that the proposed offer price significantly undervalues MultiChoice and its potential for future growth and prosperity.
MultiChoice's response underscores its confidence in its long-term prospects and strategic direction, signaling its commitment to maximizing shareholder value and maintaining its position as a leading player in the African broadcasting industry.
Canal+ is unlikely to interpret MultiChoice's rejection as a definitive end to its pursuit, given its history of gradually increasing its stake in the company since 2020. Moreover, as the parent company of Canal+, Vivendi possesses experience in navigating the complexities of hostile takeovers, having orchestrated multiple similar acquisitions in the past. Continuing its acquisition efforts, the French broadcaster is reportedly acquiring additional MultiChoice shares, edging closer to the 35% threshold limit. According to a regulatory filing reviewed by TechCabal, Canal+ is steadily increasing its stake in MultiChoice. Under South African law, exceeding a stake of 35% would mandate Canal+ to make a mandatory offer to all MultiChoice shareholders. This development suggests that Canal+ remains determined to advance its interests in MultiChoice, despite the initial setback of its offer being rejected.