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French media conglomerate Vivendi, through its subsidiary Canal+, has made a strategic move to acquire all outstanding shares of South Africa’s leading pay-TV company, MultiChoice. The companies jointly announced this development on Tuesday.
Revised Offer
Canal+, already the largest shareholder in MultiChoice, has increased its bid to 125 rand per share. This revised valuation places the pending shares at approximately 33.7 billion rand (equivalent to $1.77 billion based on Reuters calculations). Notably, this new offer comes after MultiChoice rejected Canal+’s initial bid of 105 rand last month.
In response to its 35.01% shareholding in MultiChoice, Canal+ faces a mandatory offer requirement as stipulated by the Takeover Regulations Panel. Consequently, the company has committed to submitting a firm offer no later than April 8.
MultiChoice’s Perspective
MultiChoice, as Africa’s premier pay-TV provider, expressed reservations about the initial offer, deeming it significantly undervalued. However, both companies have now pledged to collaborate closely during this acquisition process. As part of this commitment, MultiChoice will provide customary exclusivity undertakings to Canal+.
Upon the formal submission of the mandatory offer, the Independent Board of MultiChoice will convene. Following an assessment by independent experts, the board will offer its opinion and recommendation regarding the acquisition.
