Canal+, a prestigious French premium television channel, has escalated its offer to acquire MultiChoice, the premier entertainment company in Africa, by a billion dollars to $2.7 billion, up from the initial $1.7 billion proposition.
This development follows MultiChoice’s decision to reject the original offer, citing it as undervaluing the company. The increase in the bid also comes shortly after South Africa’s Takeover Regulations Panel (TRP) mandated that Canal+ must formalize an offer to purchase the remaining MultiChoice shares it does not already possess by April 8th, 2024.
As the largest shareholder in MultiChoice, Canal+ has revealed that it is now in exclusive discussions with the company and has proposed a price of 125 rand per share, a significant increase from the initially proposed 105 rand per share, according to Bloomberg.
In compliance with the TRP’s directive, Canal+ announced its commitment to present a mandatory offer to acquire the African broadcaster by the stipulated deadline of April 8th. Owning a 35.01% stake in MultiChoice, Canal+ aims to utilize this acquisition to cement its position as a dominant player in the African market.
Once the mandatory offer is made, the independent board of MultiChoice will be constituted.
the parties said.
“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. Nothing in this announcement should be read as limiting in any way the giving of such opinion,” the parties said.
Canal+ initially extended its acquisition offer to MultiChoice on February 1st, 2024, which has since led to a 52% increase in the value of MultiChoice shares. Following the announcement of the updated offer, shares in the pay-TV company surged by 4.7%.
This sequence of developments has unfolded dramatically, as anticipated for what is shaping up to be one of the most significant acquisitions in South African history. Despite the unfolding drama, it is evident that Canal+ is committed to acting in the best interests of MultiChoice and its shareholders, striving to reach an agreement that benefits all parties involved.
