MultiChoice Group Ltd has officially rejected a preliminary purchase proposal from Vivendi SE’s Canal+.
The company deemed the R105 per share offer insufficient for its value. MultiChoice expressed in an announcement that, although it’s receptive to strategies that enhance shareholder value, the offer from Canal+ at this price does not merit further discussion.
MultiChoice emphasized its commitment to acting in the company’s best interest, stating its board is willing to consider any proposal that offers a reasonable price and meets certain conditions.
Furthermore, the company pointed out the proposed deal overlooks potential benefits that could emerge from the merger. MultiChoice insists that any equitable proposal from Canal+ must account for these potential synergies.
“Following careful consideration, the board concluded that the proposed offer price significantly undervalues the Group and its future prospects,” MultiChoice said in a statement.
“Therefore, we have informed Canal+ that the offer does not provide a basis for further engagement at this price.”
MultiChoice confirmed its commitment to adhering to its responsibilities under the relevant takeover regulation provisions for any formal and definitive offer received.
In a crucial update to its shareholders, MultiChoice clarified that it has the authority to adjust the voting rights of its shares. This adjustment ensures that the total voting power of shares presumed to be owned or held by non-South Africans does not surpass 20 percent. This measure is in place to comply with specific legal requirements in South Africa.
On February 2, Canal+ proposed acquiring all outstanding shares of MultiChoice Group for approximately $1.7 billion. At that time, Canal+ owned a 31.67 percent stake in MultiChoice. The company disclosed that Canal+’s stake had since increased to 35.01 percent as of Monday.
Canal+, owned by billionaire Vincent Bolloré’s Vivendi group, operates in 25 African countries and boasts 8 million subscribers.
Their existing stake in MultiChoice, Africa’s largest pay-TV company with over 23 million subscribers in 50 countries, provided them with a strong foothold in the continent’s English-speaking and Portuguese-speaking markets.
