Canal+ ups offer for DStv-owner MultiChoice


French media giant Canal+ has offered to buy MultiChoice for R125 per share following a ruling by the Takeover Regulation Panel (TRP).

MultiChoice and Canal+ released a joint statement on SENS this morning, informing shareholders that this comes after further discussions between the two companies.

Last week, South Africa’s Takeover Regulation Panel (TRP) ruled that Canal+ must immediately make a mandatory offer to buy MultiChoice since its total interest in the company now amounts to 35.01%.

Yesterday, Canal+ said it had applied for an extension and the panel had extended the time period by 25 business days. 

Therefore, Canal+ is required to publish a firm intention announcement by no later than Monday, 8 April 2024.

According to South Africa’s Takeover Regulations, the minimum price for the mandatory offer is approximately R105 per MultiChoice ordinary share.

However, the companies said today that Canal+ has agreed to increase the price to make the mandatory offer at a cash consideration of R125 per MultiChoice ordinary share.

MultiChoice share price rose to just under R110 per share yesterday.

“MultiChoice and Canal+ intend to mutually cooperate in this regard. Accordingly, MultiChoice will give customary exclusivity undertakings to Canal+,” the companies said.

Once the mandatory offer is made, MultiChoice’s independent board will be constituted and, after receipt of an independent expert’s opinion, provide its opinion and recommendation on the offer.

MultiChoice warned investors to exercise caution when dealing in the company’s securities until full details regarding the mandatory offer have been announced. 

On 1 February 2024, Canal+ made a voluntary, non-binding offer to buy MultiChoice for R105 per share. This offer was made before Canal+’s total interest in MultiChoice surpassed the 35% mark.

This offer of R105 per share was a premium of 40% to MultiChoice’s closing share price of R75 on 31 January 2024.  However, MultiChoice rejected this offer, saying R105 per share significantly undervalues the company.

Since Canal+’s first offer, MultiChoice’s share price has risen by almost 20%.