Canal+ will have to make another takeover bid for MultiChoice

Canal+ will have to make a mandatory offer to acquire the remaining shares in MultiChoice that it does not already own.

Earlier this month, Canal+ said that it intended to acquire the remainder of the entire issued share capital of MultiChoice that it did not already own for a proposed price of R105 per share in cash. This was a premium of 40% to MultiChoice’s closing share price of R75 on 31 January 2024.

Although MultiChoice rejected the offer, the French company also increased its shareholding in MultiChoice to 35.01% at the same time.

As per the Companies Act of 2008 and JSE Listings Requirements, Canal+ would have to make a mandatory offer as it broke the 35% threshold.

MultiChoice thus said it would approach the Takeover Regulation Panel (TRP) to make a ruling on whether or not a mandatory offer by Canal+ was required to be made to all holders of ordinary shares in the Company under section 123 of the Act.

However, the TRP said that MultiChoice’s public announcement without its prior approval was unlawful and a contravention of the Act and regulations and issued a compliance notice against MultiChoice.

The notice is subject to an appeal and a review instituted by MultiChoice by the Takeover Special Committee.

That said, the TRP still ruled on 27 February 2024 that Canal+ has to make a mandatory offer in terms of section 123 of the Act after acquiring 35.01% of MultiChoice.

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