Pan-African broadcaster MultiChoice, valued at $2.15 billion, has declined a non-binding acquisition proposal from Canal+, a pay-TV company owned by Vivendi.
The offer of R105 per share, a 40% premium on MultiChoice’s then-share price, was turned down by MultiChoice’s Board.
In a statement to the Johannesburg Stock Exchange, MultiChoice conveyed that, after careful consideration, the proposed offer significantly undervalues the company and its future prospects.
Despite the rejection, it’s unlikely Canal+ will abandon its pursuit of MultiChoice, given its history of increasing its stake in the company since 2020. Vivendi, the parent company of Canal+, has experience with hostile takeovers.
Canal+ continues to acquire MultiChoice shares, approaching the 35% limit, as per a regulatory filing. South African law mandates a mandatory offer to MultiChoice shareholders if Canal+ surpasses the 35% stake threshold.
MultiChoice has requested a ruling from the regulator regarding the obligation for a mandatory offer to all ordinary shareholders. Further developments will be announced accordingly.