French broadcasting group Canal+ increased its shareholding in MultiChoice beyond 40% for the first time by acquiring an additional 14,924,639 shares. This move followed the announcement on April 8, when both companies outlined a potential deal allowing Canal+ to bid for full control of MultiChoice. The acquisitions were made through a series of on- and off-market transactions.
Canal+ also informed MultiChoice and the South African regulator, the Takeover Regulation Panel (TRP), following its recent share acquisitions.
Canal+ has reserved the right to continue acquiring shares according to the terms of the agreement made on April 8. However, the company will be required to revise the terms of its bid for MultiChoice if the company pays more than ZAR125 per share for any of the acquired shares.
On April 8, both Canal+ and MultiChoice agreed on the terms of Canal+’s proposed mandatory offer to acquire full control of MultiChoice. According to this agreement, the South African company shareholders are set to receive ZAR125 per ordinary share, surpassing the ZAR105 regulatory minimum threshold. This offer reflects a 67% premium on MultiChoice shares’ closing price on February 1, when the company was first offered its initial offerings by Canal+.
Furthermore, to evaluate Canal+’s acquisition offer, MultiChoice has established an independent board and engaged Standard Bank of South Africa as its financial advisor.
Additionally, if Canal+ manages to acquire 90% of MultiChoice shares during the offer period, it will gain the right to purchase any remaining shares and subsequently delist MultiChoice from the stock exchange.
Notably, MultiChoice shareholders will have the opportunity to become part of the combined group through a secondary listing in Johannesburg if parent Vivendi’s proposal to list Canal+ independently proceeds. However, if Vivendi’s plan to separately list the PayTV operator is implemented before the conclusion of Canal+’s offer for MultiChoice, Vivendi will consider adjusting its offer. This adjustment would allow MultiChoice shareholders the opportunity to gain exposure to the united group via the listing.