French media group Canal+ today announced that it has increased its offer to acquire MultiChoice by 19%.
Canal+, which holds the largest share of MultiChoice at 35%, agreed to increase its bid to R125 per share. This is a 19% increase from the previous offer of R105 per share.
Yesterday, the Takeover Regulation Authority (TRP) granted Canal+ an extension to its mandatory offer to MultiChoice shareholders.
“Canal+ is required to and will announce its firm intentions no later than Monday, April 8, 2024,” TRP said in a statement.
MultiChoice took note of the announcement made by Canal+ today that TRPs have been granted an extension of 25 business days until April 8, 2024 to make the required mandatory offer.
“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. The Company has agreed to notify MultiChoice shareholders that it will make a mandatory offer for cash consideration of R125 per MultiChoice ordinary share. ”
MultiChoice will therefore grant customary exclusivity to Canal+.
“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.”
MultiChoice had previously rejected Canal+'s offer and told shareholders they no longer needed to pay attention to trading in the group's shares.
Undeterred by the rejection, Canal+, already MultiChoice's largest shareholder, increased its stake to 35.01%, forcing shareholders to make a takeover offer, effectively initiating a hostile takeover. The priority for MultiChoice must be to fend off his Canal+, given that the board rejected an earlier proposal by the French company to buy a controlling stake.