Canal+ will have to make a mandatory offer to acquire the remaining shares in MultiChoice that it does not already own. <\/p>\n\n\n\n
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\u2019s closing share price of R75 on 31 January 2024.<\/p>\n\n\n\n
Although MultiChoice rejected the offer, the French company also increased its shareholding in MultiChoice to 35.01% at the same time.<\/p>\n\n\n\n
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. <\/p>\n\n\n\n
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.<\/p>\n\n\n\n
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. <\/p>\n\n\n\n
The notice is subject to an appeal and a review instituted by MultiChoice by the Takeover Special Committee. <\/p>\n\n\n\n
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. <\/p>\n\n\n\n