MultiChoice is set to keep Patel as Chairman until it closes its deal with Canal+. The board of MultiChoice Group, an African entertainment company, has reached an agreement with Imtiaz Patel, the company’s Chairman, for him to stay until the completion of the buyout with French media company Canal+.
MultiChoice to Keep Patel as Chairman
Following the initial announcement in September 2023 about Imtiaz Patel stepping down as chairman of MultiChoice Group on April 1, 2024, there has been a reversal in plans. In a recent shareholder update released on April 2, 2024, MultiChoice revealed an interesting turn of events.
Due to a recent ruling by the Takeover Regulation Panel mandating Groupe Canal+ SA to make an immediate offer to all MultiChoice shareholders, MultiChoice’s board sees significant benefits in continuity at this time.
Consequently, Imtiaz Patel has agreed to extend his tenure until the completion of the Canal+ transaction or until a determined date based on transaction progress.
In light of these developments, Elias Masilela, a seasoned Non-Executive Director (NED) who was expected to succeed Patel as chair, has been appointed Deputy Chairman of the MultiChoice board. Moreover, Masilela will take over from Jim Volkwyn as Lead Independent Director, with Volkwyn stepping down but remaining a NED.
What the Board Feels About This Development
The board expressed gratitude to Patel for his continued service and welcomed Masilela into his new role. Additionally, they thanked Volkwyn for his contributions to the company.
Canal+ Currently Holds Over 35% of MultiChoice Shares
Canal+ currently holds over 35% of MultiChoice shares and has been steadily increasing its stake since 2020. In February 2024, Canal+ made a non-binding indicative offer to acquire the remaining shares of MultiChoice for R31.7 billion ($1.6 billion). However, MultiChoice declined the offer, citing undervaluation, and requested an improved offer from Canal+.
Canal+ Directed To Make a Mandatory Offer for the Remaining Shares in MultiChoice
Subsequently, the South African Takeover Regulation Panel directed Canal+ to make a mandatory offer for the remaining shares in MultiChoice. The deadline for completing the buyout is April 8, 2024. Canal+ has raised its initial buy offer, and reports indicate both parties are working closely to finalize the deal before the deadline.
What Canal+ Intends To Do After the Completion of the Transaction?
Upon completion of the transaction, Canal+ intends to merge with MultiChoice to expand its subscriber base and increase investment in sports and local content.
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