MultiChoice turns offer price from Canal+

MultiChoice has rejected Canal+’s offer to acquire the company at R105 per share, stating that it significantly undervalues the company.  

Canal+ submitted a non-binding offer to the MultiChoice board, which proposed a cash consideration of R105.00 per MultiChoice ordinary share, representing a 40% premium to MultiChoice’s closing share price on January 31, 2024. Canal+’s offer comes from confirmations expected after further engagements with MultiChoice and confirmatory due diligence. 

Despite the premium offered, MultiChoice’s board concluded that the proposed R105 cash offer undervalues the group and its future prospects. The rejection was based on a recent valuation exercise conducted by MultiChoice, which valued the company significantly above R105 per share, excluding potential synergies from the envisaged transaction. 

MultiChoice emphasized that Canal+ has repeatedly highlighted the advantages of the combined entity and asserted that these synergies should be factored into any fair offer. The board expressed openness to maximizing shareholder value but conveyed to Canal+ that, at the proposed price, the letter did not provide a basis for further engagement. 

While rejecting the offer, MultiChoice reiterated its willingness to engage with any party offering a fair price subject to appropriate conditions. Additionally, Canal+ has increased its stake in MultiChoice to 35.01% of the total ordinary shares in issue. Canal+ stated its respect for South African media sector laws and regulations and the Johannesburg Stock Exchange, acknowledging the uncertainty surrounding the potential offer’s progression and terms.