Canal+, the French pay-TV giant under Vivendi SE ownership, responds to regulatory pressure by raising its bid to acquire MultiChoice to $2.9 billion.
The move comes after a regulatory panel mandated Canal+ to make an offer to MultiChoice’s ordinary shareholders.
Enhanced Offer of 125 Rand Per Share
Canal+’s revised bid amounts to an offer of 125 rand per share, marking a substantial 20% increase from the initial proposal of 105 rand.
The updated offer reflects Canal+’s commitment to engage MultiChoice’s ordinary shareholders.
Regulatory Extension and Compliance Assurance
South Africa’s Takeover Regulation Panel (TRP) grants Canal+ a 25-business day extension, valid until April 8th, to submit a mandatory bid for MultiChoice shares.
Canal+ pledges to respect and comply with the regulatory panel’s decision in line with its fiduciary responsibility.
Stake Increase and Mandatory Offer Requirement
Since 2020, Canal+ has steadily increased its stake in MultiChoice from 20.1% to 35.01% as of February 2023.
According to South African law, surpassing the 35% threshold necessitates Canal+ to issue a mandatory offer to acquire MultiChoice shares.
MultiChoice’s Prior Rejection and Valuation Considerations
In February, MultiChoice, valued at $2.15 billion in the market, rejected a non-binding acquisition offer from Canal+.
MultiChoice communicated to its shareholders that it deemed the initial offer undervalued, setting the stage for a renewed bid consideration.
Looking Ahead: Shareholders to Weigh In
With Canal+’s enhanced bid on the table, MultiChoice shareholders now face a pivotal decision.
The increased offer prompts a reevaluation of the acquisition proposition, shaping the future landscape of the pay-TV company.
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