MultiChoice, a pay-TV company listed on the Johannesburg Stock Exchange (JSE), has disclosed to investors that it has reached a “cooperation agreement” with Canal+, a French media giant, regarding a mandatory offer Canal+ is mandated to make to MultiChoice shareholders. This development follows Canal+’s acquisition of over 35% of MultiChoice’s equity in 2024, triggering a mandatory offer under South African regulations.
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Recent reports suggest that Canal+ has further increased its stake in MultiChoice through continued purchases on the open market, now holding a 36.6% ownership in the South African company. The cooperation agreement between the two broadcasters entails collaborating on various aspects of the offer, including fulfilling offer conditions and publishing a combined offer circular.
The South African Takeover Regulation Panel, overseeing the mandatory offer, set the minimum offer price at R105 per share. However, Canal+ has proposed a new offer price of R125 per share to MultiChoice shareholders, significantly exceeding the minimum price and representing a nearly 67% increase from MultiChoice’s share price before the initial offer in February.
Although the takeover regulation panel set April 8 as the deadline for completing the buyout, extensions are possible with approval from the panel. To ensure fairness, MultiChoice has established an independent board and appointed Standard Bank of South Africa Limited as an independent expert to review the offer terms and provide an opinion on fairness.
Should the deal proceed, MultiChoice could potentially be delisted from the JSE, as Canal+ retains the right to do so. This move could have implications for the Southern African stock exchange, aligning with the trend of companies going private in recent years.
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