Rédaction Africa Links 24 with techfocus24
Published on 2024-02-07 08:44:14
The board of MultiChoice Group has rejected a bid from France’s Groupe Canal+ to acquire the DStv, GOtv, and Showmax parent company for a price of US$1.7 billion, stating that the offer undervalues the business. Canal+ had made a non-binding offer to acquire the South African-headquartered pay-television group’s entire issued share capital in an all-cash deal, valuing the business at approximately US$2.53 billion.
In a statement to shareholders, MultiChoice disclosed that the delivery of the Canal+ letter occurred after more than a year of discussions between the two parties. Following the delivery of the letter, the offer has been extensively discussed in public and with the press. However, after careful consideration, the board concluded that the proposed offer price of US$5.54 in cash significantly undervalues the group and its future prospects. The company had recently conducted a valuation exercise that valued the group at a significantly higher price than the one offered by Canal+.
While the board expressed its openness to all means of maximizing shareholder value, it conveyed to Canal+ that, at the proposed price, the letter does not provide a basis for further engagement. The board also stated its commitment to acting in the best interests of the company and remaining open to engaging with any party offering a fair price and subject to appropriate conditions. Additionally, it emphasized its dedication to acting in accordance with its duties in the applicable provisions of the Takeover Regulations regarding any formal and binding offer.
Meanwhile, Canal+ does not appear to be backing down. MultiChoice announced that Canal+ has increased its ownership of the company’s ordinary shares to 35.01%, up from 31.7% last July. MultiChoice has filed the required notice with the Takeover Regulation Panel and requested a ruling as to whether a mandatory offer must be made to all holders of ordinary shares in the company. Further developments will be announced as they arise.
The rejection of the bid by MultiChoice Group’s board and the subsequent increase in Canal+’s ownership of the company’s shares indicate a significant development in the ongoing discussions between the two entities. It is evident that both parties are committed to maximizing shareholder value and are prepared to engage in further negotiations, subject to fair pricing and appropriate conditions. The market will be eagerly awaiting any further announcements related to this potential acquisition.
