Big step for R55 billion Multichoice takeover

Multichoice and Canal+ are pushing ahead with a potential merger, with both parties now approaching regulators.

An independent board recently said that Canal+’s offer consideration of R125 per share is fair and reasonable and recommended that shareholders accept it once it becomes unconditional. Multichoice’s share price currently stands at R109 per share.

Canal+ attempted to purchase Multichoice at the start of the year, with its opening bid of R54 billion rejected.

However, Canal+ then increased its shareholding in Multichoice to over 35%, meaning it had to make an offer to purchase the rest of the company. The French broadcaster’s shareholding now stands at over 45%.

With Multichoice having 442,512,678 shares in issue, the takeover bid is worth R55.3 billion.

Multichoice and Canal+ have now made a joint merger control filing to the Competition Commission regarding the offer, as required by the Competition Act, No.89 of 1998.

Canal+ and Multichoice are also engaging with the Independent Communications Authority of South Africa (“ICASA”) and other regulatory authorities.

The transaction is classified as a “large merger” under the Competition Act, which requires approval from the Competition Tribunal.

The Competition Commission will thus consider the filing and refer its recommendations to the Competition Tribunal.

With the regulatory process underway, Canal+ and Multichoice will provide shareholders with further updates.

Mulitchoice said that the terms and conditions of the Offer, as contained in the Combined Circular, remain unchanged.

Shareholders have until 22 April 2025 to trade in Multichoice Shares to participate in the offer as per the circular:

Multichoice and Canal+ have, however, remained quiet on some of the regulatory hurdles that affect the deal.

Multichoice previously said it was working to circumvent South Africa’s foreign broadcast restrictions, which limit foreign entities from holding more than 20% of a South African broadcaster’s voting rights.

The group also plans to maintain Multichoice’s BBBEE credentials.

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