MultiChoice, the pan-African broadcaster with a market capitalisation of $2.15 billion, has expectedly turned down a non-binding acquisition offer by Canal+, the Vivendi-owned pay-TV firm. MultiChoice instructed shareholders it could not entertain the provide of R105 per share, a 40% premium on MultiChoice’s then-share worth.
“After cautious consideration, the Board has concluded that the proposed provide worth of R105 in money considerably undervalues the Group and its future prospects,” MultiChoice mentioned in an announcement to the Johannesburg Inventory Trade.
It’s unlikely that Canal+ will contemplate the rejection as an indication to finish its pursuit of MultiChoice, having begun growing its stake within the firm since 2020. Moreover, Vivendi, Canal+ mum or dad firm, is accustomed to the complexities and intricacies of hostile takeovers, having engineered at the least two comparable takeovers.
The French broadcaster continues to mop up MultiChoice shares because it pushes its method to the 35% restrict, in accordance with a regulatory submitting seen by TechCabal.
Per South African regulation, a stake of greater than 35% would require Canal+ to make a compulsory provide to MultiChoice shareholders.
“MultiChoice has additionally requested the [regulator] to make a ruling as as to whether a compulsory provide have to be made to all holders of extraordinary shares in [MultiChoice],” one other submitting made on Monday morning mentioned. “An extra announcement will likely be launched if there are additional developments.”