HomeBusinessMultiChoice Rejects Canal Plus Offer, Citing Undervaluation

MultiChoice Rejects Canal Plus Offer, Citing Undervaluation

In a statement, MultiChoice emphasised that the synergies presented by Canal Plus should be taken into account when making a fair offer.

MultiChoice Group, South Africa’s largest pay-TV company, has announced that it will not continue talks with Vivendi’s Canal Plus after the board concluded that the offer significantly undervalues the company.

Canal Plus, a major shareholder in MultiChoice, had offered 105 rand ($5.55) per share for every MultiChoice share it does not already own.

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However, MultiChoice stated that a recent valuation exercise valued the group at a significantly higher price, excluding any potential synergies that may arise from the proposed deal.

In a statement, MultiChoice emphasised that the synergies presented by Canal Plus should be taken into account when making a fair offer. While the board remains open to engaging with any party in respect of a fair price, it conveyed to Canal Plus that the proposed offer price does not provide a basis for further engagement.

Canal Plus had stated that its offer was non-binding and indicative but expected to deliver a letter of firm intention to MultiChoice’s board once due diligence had been completed. Following the announcement of the deal, Canal Plus increased its stake in MultiChoice from 31.67% to 35.01%.

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As a result of this development, MultiChoice has requested the Takeover Regulation Panel to rule on whether a mandatory offer must be made to all holders of ordinary shares in the company, in accordance with the Companies Act.

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MultiChoice’s decision to reject Canal Plus’ offer highlights its commitment to maximising shareholder value and ensuring fair pricing for the company. The board’s openness to engaging with other parties underscores its dedication to exploring all potential opportunities for the benefit of its shareholders.

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Florence Sibiya for SurgeZirc SA
Florence Sibiya for SurgeZirc SA
Florence Sibiya is a highly dedicated and talented reporter for SurgeZirc SA Business News. With her passion for business and her commitment to delivering accurate and reliable news, she has become an invaluable asset to the team.
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