MultiChoice Group is moving closer to a potential buyout by Canal+, as the French firm has increased its stake in the JSE-listed broadcaster and initiated discussions for a mandatory offer to MultiChoice shareholders.
MultiChoice Group Nears Agreement with Canal+ for Potential Buyout
In a statement to investors, MultiChoice revealed that it has entered into a “cooperation agreement” with Canal+ to facilitate the mandatory offer process. This agreement entails both companies cooperating to fulfill offer conditions and publish a combined offer circular.
Canal+ has steadily increased its stake in MultiChoice, now holding 36.6% of the broadcaster’s equity, triggering a mandatory offer under South African regulations.
Under Canal+’s proposal, MultiChoice shareholders would receive R125/share in cash, a premium above the minimum required by takeover regulations.
Canal+ has Indicated a Possibility for South African Investors
However, regulatory approvals remain a significant hurdle, and if the deal is not concluded by April 8, 2025, it could be terminated, subject to extensions with regulatory approval.
As part of the process, MultiChoice has established an independent board to assess the fairness and reasonableness of Canal+’s offer, as required by law.
If the deal proceeds, MultiChoice may be delisted from the JSE, potentially impacting South Africa’s stock exchange landscape. However, Canal+ has indicated a possibility for South African investors to participate in its European listing, offering exposure to the combined entity.
Proposed Buyout
A combined circular to MultiChoice shareholders is expected to be issued by May 7, outlining further details of the proposed buyout and listing opportunities.
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