As per the terms outlined in the agreement dated April 8, Canal+ retained the privilege to pursue additional acquisitions of shares.
Canal+ has further solidified its position in MultiChoice by acquiring additional shares, pushing its ownership in the pay-TV operator to just over 40%.
The French pay-TV giant disclosed the acquisition of 14,924,639 MultiChoice shares through a series of transactions, both on and off the market. This move follows the outline of a deal agreed upon on April 8, where Canal+ had the opportunity to increase its stake in MultiChoice.
These latest acquisitions have been duly reported to MultiChoice and the South African regulator, the Takeover Regulation Panel (TRP).
According to the terms set on April 8, Canal+ retained the right to pursue further acquisitions of shares. However, any shares acquired over ZAR125 would necessitate a revision of the bid terms.
As outlined in the agreement, Canal+ proposed a mandatory offer to acquire full control of MultiChoice, with shareholders slated to receive ZAR125 per ordinary share. This price exceeded the regulatory minimum threshold of ZAR105 and represented a substantial 67% premium over MultiChoice shares’ closing price on February 1, when Canal+ initially extended its offer.
In response, MultiChoice has established an independent board to assess the offer and enlisted Standard Bank of South Africa as an advisor.
Should Canal+ secure 90% of MultiChoice shares during the offer period, it reserves the right to acquire any remaining shares and subsequently delist MultiChoice.
Looking ahead, if parent company Vivendi proceeds with its plan to list Canal+ separately, MultiChoice shareholders will have the opportunity to become part of the unified group through a secondary listing in Johannesburg.
If Vivendi’s listing of Canal+ materializes before the conclusion of Canal+’s offer for MultiChoice, adjustments to the offer will be considered to afford MultiChoice shareholders the chance to participate in the combined group through the listing.
