After a decision by South Africa’s Takeover Regulations Panel, Vivendi’s French media business, Canal+, has declared its unwavering desire to purchase further shares of the pay-TV giant MultiChoice by April 8.
The Times recorded that, because Canal+ owns 35.01% of MultiChoice, the panel ordered it to disclose its clear intention, so requiring a forced offer. Canal+ has complied with the ruling, obtaining a 25-business-day extension from the panel and being exempted from time constraints.
Prior to January 31, 2024, MultiChoice’s closing share price of R75 represented a 40% premium above Canal+’s offer to buy the remaining shares of MultiChoice for 105 rand per share.
MultiChoice, however, turned down the offer, claiming it was too low for the business. The MultiChoice board of directors has made it clear that “It will always act in the organization’s and its shareholders’ best interests.”
At 08:40 GMT, Canal+, the largest stakeholder in MultiChoice, witnessed a 2.56% increase in its shares. Founded in 1985 in South Africa, MultiChoice offered bundles with local programming and live English football events as it spread around the continent in the 1990s.
Owning Showmax, a streaming service that faces up against Netflix in the area, MultiChoice has gained access to the fast expanding entertainment sector in Africa.
The French billionaire Bollore wants to take advantage of this trend and establish the new group’s presence in local programming and sports, which is reflected in Canal+’s proposal.
This development sheds light on the continuing dynamics between two major actors in the media and pay-TV space, Canal+ and MultiChoice.
The Takeover Regulation Panel’s expansion emphasizes the need for regulatory supervision to guarantee honest and open transactions in business acquisitions.
Industry participants will be keenly observing the final decision and Canal+’s next moves as it develops over the next few weeks.
