MultiChoice, the popular pan-African broadcaster valued at $2.15 billion, has politely declined an acquisition offer from Canal+, the pay-TV company owned by Vivendi. The offer of R105 per share, a 40% increase from MultiChoice’s then-share price, was turned down by MultiChoice, stating that the proposed cash price undervalues the company and its future potential.
In a statement to the Johannesburg Stock Exchange, MultiChoice’s Board shared, “After careful consideration, the Board has concluded that the proposed offer price of R105 in cash significantly undervalues the Group and its future prospects.”
Even though MultiChoice has turned down the offer, it seems Canal+ is not ready to give up. Since 2020, Canal+ has been steadily increasing its stake in MultiChoice, with the parent company Vivendi having experience in navigating complex takeover situations.
According to regulatory filings seen by TechCabal, Canal+ is actively acquiring more MultiChoice shares, aiming to reach the 35% limit. In accordance with South African law, crossing the 35% threshold would require Canal+ to make a mandatory offer to all MultiChoice shareholders.
In response to this, MultiChoice has taken a proactive step by requesting the regulator to rule on whether a mandatory offer is necessary for all holders of ordinary shares in MultiChoice. A follow-up announcement will be made if there are any further developments in this ongoing situation.