MultiChoice, has rejected Canal+’s proposal, insisting that the French media’s offer undervalued the company.
The company however expressed willingness to further engage with any party regarding offers fair in price and subject to appropriate conditions.
Last Thursday, Canal+, which currently has a 35.01% stake in MultiChoice, revealed plans to acquire MultiChoice after submitting a non-binding indicative offer of $5.6 per share, a 40% premium over MultiChoice’s closing share price of $4 on January 31, 2024.
The proposal assessed MultiChoice at over $ 2.4 billion, a move which would see the company pay $1.7 billion in cash for the remaining 64.99% ownership it does not possess.
While the South African DStv and GOtv owner acknowledged that the board is open to all means of maximising shareholder value, it informed Canal+ that its letter does not provide a basis for further engagement at the proposed price.
MultiChoice also said that concerning any formal and binding offer, the board will consistently carry out its duties following the guidelines in the Takeover Regulations.
The South African Electronic Communication Act 2005 forbids foreigners from directly or indirectly controlling a commercial broadcasting licence or owning more than 20% of a commercial broadcasting licensee’s voting shares or paid-up capital, a law which leaves Canal+ open to challenges.
The media empire has previously stated that it complies with all laws and regulations relevant to the media industry in South Africa and companies listed on the Johannesburg Stock Exchange (JSE).
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