Groupe Canal+ is The companies announced on Tuesday that they had upgraded their offer to acquire all the shares they do not already own in JSE-listed MultiChoice Group.
Canal+, MultiChoice's largest shareholder with a 35% stake, agreed to increase its bid from the previous R105 per share to R125, representing 19%.
Takeover regulations mean Canal Plus must make a mandatory offer to MultiChoice shareholders on Monday after the South African broadcaster rejected an offer of R105/share, saying it significantly undervalued the group. It has been revealed that they requested and received an extension of the commission's ruling. .
“After further discussions, Canal+ and MultiChoice have agreed that the minimum price for a compulsory takeover under section 111(2) of the Takeover Regulation is approximately R105 per MultiChoice ordinary share, but Canal+ has agreed to increase the price. “We have agreed to notify MultiChoice shareholders of the compulsory sale of MultiChoice ordinary shares for a cash consideration of R125 per share,” the JSE-listed group wrote to shareholders before the market opened in Johannesburg on Tuesday. said in a statement.
“MultiChoice and Canal+ intend to cooperate with each other in this regard.
We plan to grant Canal+ customary exclusivity.”
“Once a mandatory offer is made, MultiChoice's independent committee will be established and, after receiving independent expert opinion, will provide an opinion and recommendation on the mandatory offer.”
hurdle
MultiChoice shares, which closed at R109 on Monday, could soar when markets open at 9am in Johannesburg.
But even if the deal were approved by shareholders, Canal+'s efforts to acquire MultiChoice would still be hampered by a law that caps foreign companies' voting rights in South African broadcasting licensees at 20%. There is a possibility that This restriction is contained in the Electronic Communications Act.
Read: Why Canal+ seeks MultiChoice management
If Canal+ somehow manages to overcome the restrictions, the deal would also need to be approved by South Africa's competition authority, which could launch an investigation into the impact on competition in the local broadcasting industry. is high. — (c) 2024 NewsCentral Media with additional reporting (c) 2024 Reuters