‘Shocking’ Canal+ Was Reportedly Told to Put Together a MultiChoice Mandatory Offer

Canal+ was reportedly told to put together a MultiChoice mandatory offer. Regarding a possible takeover, Groupe Canal+’s approach to MultiChoice has drastically changed.

Canal+ Was Told to Put Together a MultiChoice Mandatory Offer

Canal+ Was Told to Put Together a MultiChoice Mandatory Offer

The Takeover Regulation Panel (TRP) has decided that Groupe Canal+’s acquisition strategy for MultiChoice Group has to drastically change. The French broadcaster is now required to present a “mandatory offer” to the shareholders of the JSE-listed company.

Previously, MultiChoice had rejected the Canal+ offer and informed its stockholders that they were no longer required to trade the group’s shares with caution. MultiChoice said in a statement to shareholders on Wednesday, “Shareholders are advised that the TRP issued a ruling on 27 February to the effect that Canal+ has acquired 35.01% of the voting rights in MultiChoice and, accordingly, a mandatory offer in terms of section 123 of the ‘Companies Act’ has been triggered.”

The parent company of DStv and Showmax says, “Canal+ is therefore required to make the mandatory offer immediately, in line with the requirements of the act and the regulations.”

TRP Announcement Regarding This Matter

Following MultiChoice’s suspension of possible acquisition negotiations with its largest shareholder, the TRP announced on February 6 that it was looking into the bid made by Canal+.

Canal+ announced on February 1st that it was offering R105 per share for each MultiChoice share that it did not already hold. According to the statement, the offer is projected to be valued at R31.7 billion, which is 40% more than MultiChoice’s closing share price of R75 on January 31.

The largest pay-TV operator on the continent rejected the bid, claiming it severely undervalued the organization. However, MultiChoice stated that it was willing to discuss any agreement with anyone as long as it came at a reasonable cost.

MultiChoice Requested that the TRP Rule on Whether or Not Such an Offer Was Necessary

Canal+ has gone above the point at which South African law mandates that a business make an offer to shareholders to acquire a stake larger than 35%. But MultiChoice requested that the TRP rule on whether or not such an offer was necessary.

“The TRP contended that the publication of … the announcement without the approval of the TRP was unlawful, being in contravention of the act and the regulations, and issued a compliance notice against MultiChoice,” according to the broadcaster statement on Wednesday.



Please enter your comment!
Please enter your name here