MultiChoice office in Randburg.
France-based media giant Canal+ has stepped up its offer to acquire South African video entertainment group MultiChoice.
Last month, Canal+ sent a letter to MultiChoice's directors containing an indicative non-binding offer to acquire all of MultiChoice's outstanding common shares it does not already own, subject to obtaining the necessary regulatory approvals. I confirmed that it had been submitted to the meeting.
A cash consideration of R105 per MultiChoice ordinary share was offered.
However, MultiChoice rejected the offer, saying it undervalued the company and asked the France-based company to ease the deal.
In a turn of events, last week South Africa's Takeover Regulation Authority (TRP) ordered Canal+ to make an “immediate mandatory offer” to acquire the shares it does not already own in DStv operator MultiChoice.
This comes after MultiChoice asked TRP to rule on whether a mandatory offer by Canal+ needs to be made to all holders of the company's ordinary shares under section 123 of the Companies Act. be.
TRP issued a compliance notice to MultiChoice, asserting that the announcement without TRP's approval is in violation of laws and regulations and is illegal.
MultiChoice and Canal+ released a joint statement today saying: “While the minimum price for a mandatory offer under Regulation 111(2) of the Takeover Regulations is approximately R105 per MultiChoice ordinary share, Canal+ has made a mandatory offer for a cash consideration of R125 per MultiChoice ordinary share. This is an offer.”
MultiChoice and Canal+ say they intend to cooperate with each other in this regard. MultiChoice will therefore grant customary exclusivity to Canal+. Once a mandatory offer is made, MultiChoice's independent board of directors will be established to provide an opinion and recommendation on the mandatory offer in accordance with Regulation 110 of the Takeover Regulations after receiving an independent expert opinion.
“Nothing in this announcement should be construed as limiting in any way the expression of such views,” the video entertainment group said.
