Canal+ ups stake in MultiChoice to 40%

French media giant Canal+ has upped its stake in DStv-owner MultiChoice to 40.01% following its formal cash offer for the company.

MultiChoice informed shareholders today that Canal+ has acquired an additional interest in the ordinary shares of the broadcaster.

Canal+’s total interest now amounts to 40.01% of MultiChoice’s total ordinary shares in issue.

MultiChoice said it has filed the required notice with the Takeover Regulation Panel (TRP) and the Companies and Intellectual Property Commission.

This comes after Canal+ made an all-cash formal offer for MultiChoice on 8 April 2024, valuing the broadcaster’s shares at $2.9 billion (R54.3 billion).

Canal+ will offer to buy shares at R125 apiece, said MultiChoice and Canal+ in a filing on Monday.

As at the close of business on 5 April 2024, Canal+ held approximately 36.6% of the total number of MultiChoice shares in issue, which it has now upped to 40.01%.

In the statement announcing the offer, Canal+ said it reserves the right to buy more MultiChoice shares in the market.

“Canal+ reserves the right to acquire additional MultiChoice Shares in the market during the course of the offer in accordance with applicable law,” the companies said.

“Any such acquisitions will be reported to the TRP and announced to MultiChoice shareholders on SENS.” 

The statement also said that should Canal+ acquire any additional MultiChoice shares during the course of the offer at a price higher than R125.00, it will be obliged to increase the offer price.

The price will have to be increased to no less than the highest consideration paid per MultiChoice share on the market.

Currently, MultiChoice’s share price is at R119.97 and has increased by over 5% since Canal+ made its latest offer.

Canal+’s MultiChoice offer timeline

Canal+ first made an informal offer for MultiChoice on 1 February 2024 through a letter indicating its non-binding intention to acquire the remaining MultiChoice shares that it did not already own at the time.

The firm offered R105 a share for MultiChoice.

On 5 February 2024, MultiChoice revealed that discussions between Canal+ and MultiChoice had taken place for well over a year at the time.

It said the board of directors of MultiChoice had concluded that the proposed offer price of R105.00 did not provide a basis for further engagement.

However, it remained open to engage with any party in respect of any offer with a fair price.

On the same day, MultiChoice announced that Canal+ had acquired an additional interest in MultiChoice’s shares and upped its stake in the broadcaster to 35.01%.

This required Canal+ to make a mandatory offer for MultiChoice.  

On 28 February 2024, MultiChoice said the TRP issued a ruling that Canal+ had to immediately make a mandatory offer.

Following extensive engagements between senior representatives of Canal+ and MultiChoice after the announcement on 28 February 2024, the parties entered into an agreement. 

As part of this agreement, Canal+ would make the mandatory offer at a cash consideration of R125.00 per offer share, significantly above the minimum price for the mandatory offer.

MultiChoice also expressed its intention to mutually co-operate with Canal+ in relation to the offer and to grant Canal+ customary exclusivity undertakings.


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