MultiChoice rejects ‘under valued’ Canal+ offer

MULTICHOICE, Africa's leading broadcasting conglomerate, has rejected a takeover bid from French corporation Canal+. Canal+, Vivendi's owned pay-TV provider, made a non-binding purchase bid that did not fulfil MultiChoice's organisational appraisal standards.

With a market capitalisation of US$2,15 billion, Multichoice has refused to entertain Canal+ initial bid.

A report by a Nigerian tech media platform, Techcabal, disclosed that the African broadcasting behemoth informed shareholders that it would not accept the offer of R105 per share, a 40 percent premium to MultiChoice's then-share price.

“After careful consideration, the Board has concluded that the proposed offer price of R105 in cash significantly undervalues the Group and its future prospects,” MultiChoice relayed via a statement to the Johannesburg Stock Exchange.

However, Canal+’s move to continually expand its stake in Multichoice since 2020, may be evidence that it would not back down from attempting to own Multichoice.

According to a regulatory document obtained by TechCabal, Canal + continues to buy up MultiChoice shares as it approaches the 35 percent limit.

In line with South African laws, a holding of more than 35 percent would oblige Canal+ to make an obligatory offer to MultiChoice shareholders.

“MultiChoice has also requested the (regulator)to make a ruling as to whether a mandatory offer must be made to all holders of ordinary shares in (MultiChoice),” another filing made on Monday morning said.

“A further announcement will be released if there are further developments.”