MultiChoice responds to huge Canal+ takeover bid

 ·5 Feb 2024

The Board of Directors of Multichoice have rejected a takeover from French broadcaster Canal+.

Last week, Canal+ said that it intended to acquire the remainder of the entire issued share capital of MultiChoice for a proposed price of R105 per share in cash. This represented a premium of 40% to MultiChoice’s closing share price of R75 on 31 January 2024.

The public announcement from Canal+ came after a year of discussions between the two groups.

However, the Multichoice board said that the proposed offer price of R105 of cash significantly undervalues the group and its future prospects.

“MultiChoice’s valuation excludes any potential synergies which may arise from the envisaged transaction. In this regard Canal+ has, following the lengthy discussions between the parties, repeatedly conveyed to the public what it sees as the advantages of the combined entity and therefore seemingly takes the view that there are significant synergies. These synergies need to be factored into any fair offer made by Canal+,” the group said.

“Therefore, while the Board is open to all means of maximising shareholder value, it has conveyed to Canal+ that – at this proposed price – the letter does not provide a basis for further engagement. Caution is accordingly no longer required to be exercised by shareholders when dealing in their securities.”

“In keeping with its duty to act in the best interests of the Company, the Board remains open to engage with any party in respect of any offer which is for a fair price and is subject to appropriate conditions.”

Despite rejecting an overall takeover offer from French company, in a separate announcement on SENS, MultiChoice said that Canal+ has increased its shareholding in the company to 35.01% of its total ordinary shares in issue

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