MultiChoice Offer Price By Canal+ Rises by 19%

The two businesses announced on Tuesday that Groupe Canal+ has increased its offer to purchase all of the JSE-listed MultiChoice Group’s shares that it does not currently own. With a 35% holding in MultiChoice, Canal+ is the company’s largest stakeholder. As a result, the MultiChoice offer price by Canal+ rises by 19%.

MultiChoice Offer Price By Canal+ Rises by 19%

MultiChoice Offer Price By Canal+ Rises by 19%

The Takeover Regulation Panel ordered Canal+ to make an obligatory offer to MultiChoice shareholders after the South African broadcaster rejected an offer of R105 per share, claiming it significantly undervalued the company. On Monday, it became public that Canal+ had requested and been granted an extension to this finding.

According to a JSE-listed group in a statement to shareholders before markets opened in Johannesburg on Tuesday. “Following further discussions, Canal+ and MultiChoice have agreed to advise MultiChoice shareholders that while the minimum price for the mandatory offer in terms of regulation 111(2) of the takeover regulations is approximately R105 per MultiChoice ordinary share, Canal+ has agreed to increase the price to make the mandatory offer at a cash consideration of R125 per MultiChoice ordinary share.”

In this regard, MultiChoice and Canal+ want to work together. As a result, “MultiChoice will give customary exclusivity undertakings to Canal+,” according to the statement.

“Once the mandatory offer is made, MultiChoice’s independent board will be constituted. Following receipt of the opinion of the independent expert, the board will provide its recommendation and opinion on the mandatory offer.”

MultiChoice Shares Might See a Spike in Value

MultiChoice shares, which closed at R109 on Monday, might see a spike in value when Johannesburg’s markets open at 9 a.m.

But even if the proposal is approved by shareholders, rules capping foreign organizations’ voting influence over South African broadcasting licensees at 20% may still prevent Canal+ from acquiring MultiChoice. The Electronics Communications Act includes this restriction.

If Canal+ manages to get over this barrier, it will also need to get the purchase approved by South Africa’s competition authorities, who will probably look into how it will affect competition in the l.



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