Canal+ makes $1.8bn bid for MultiChoice in South Africa

Source: MultiChoice

French media giant Canal+ has made an improved offer that would see it take full ownership of South Africa’s MultiChoice.

The newly proposed deal will see Canal+ paying 125 rand per share – an increase on the 105 rand per share previously offered in February – and values the African pay TV & streaming operation at $1.8bn.

Canal+ CEO & chairman, told Reuters that the price had been negotiated with MultiChoice’s board, adding: “It was clear that at that price we would get management and board support.”

The development comes after the South African regulator, the Takeover Regulation Panel (TRP), had given Canal+ until 8 April to make a firm announcement about its next move.

The TRP ruled last week that Canal+ would have to make a mandatory offer for MultiChoice, after the French firm crossed a 35% ownership threshold when it upped its equity stake in the South African firm to 35.01%.

Canal+ had argued it should not be required to make a mandatory offer as MultiChoice’s own rules of incorporation held that non-South African companies should be restricted to holding 20% of the company’s voting rights.

However, the TRP rejected this argument on the basis that he relevant section of MultiChoice’s articles of incorporation “applies if and only if either of two threshold-related circumstances arises and then only in order to ensure compliance with a defined foreign control restriction”.

That defined restriction means “the ability of a foreigner to exercise control over and have an interest in the holder of a commercial broadcasting service licence above a 20% threshold” and does not apply to votes cast on “other (non-licensee) matters”.

Canal+ has already made an offer to take over MultiChoice that was then rejected by the operator’s board on the grounds that it undervalued the company.