Canal+ makes new and improved offer for MultiChoice
Canal+ has upped its offer to buy the remaining MultiChoice shares it does not own.
Last month, Canal+ offered to purchase the remainder of the entire issued share capital of MultiChoice that it did not already own, offering MultiChoice R105 per share in cash – a 40% premium on MultiChoice’s closing share price of R75 on 31 January 2024
MultiChoice rejected the offer, but Canal+ increased its shareholding to over 35%.
The Companies Act of 2008 states that a mandatory offer must be made after the 35% threshold is breached.
Despite slapping MultiChouce with a compliance notice for the public manner in which it approached, the Takeover Regulation Panel (TRP) said that Canal+ would have to make a mandatory offer.
The TRP gave Canal+ an extension until 8 April 2024 to make a mandatory offer to acquire the rest of MultiChoice, but the French broadcaster has come up with an improved offer.
While the minimum price for the Mandatory offer in terms of regulations is R105 per ordinary share, Canal+ has agreed to increase the price to R125 per ordinary share.
“MultiChoice and Canal+ intend to mutually cooperate in this regard. Accordingly, MultiChoice will give customary exclusivity undertakings to Canal+,” said the groups in a joint statement.
“Once the Mandatory Offer is made, the Independent Board of MultiChoice will be constituted and will, after receipt of the Independent Expert’s opinion, provide its opinion and recommendation on the Mandatory Offer in accordance with Regulation 110 of the Takeover Regulations.”
MultiChoice shares closed at R109 per share yesterday, 4 March.
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