Canal+, the French premium television channel, that offered to acquire all of the shares of MultiChoice that it does not already own, has seen the offer declined.
MultiChoice said that Canal+’s offer to buy the company significantly undervalues the company.
Canal+ had offered MultiChoice shareholders R105 cash per share, representing a 40% premium to MultiChoice’s closing share price of R75.00 on January 31, 2024 on the JSE.
On Monday, MultiChoice informed shareholders that after careful consideration, its board concluded that the proposed offer price of R105 in cash significantly undervalues the group and its future prospects.
“In this regard, Canal+ has, following the lengthy discussions between the parties, repeatedly conveyed to the public what it sees as the advantages of the combined entity and therefore seemingly takes the view that there are significant synergies,” the company said.
“These synergies need to be factored into any fair offer made by Canal+.”
“Therefore, while the Board is open to all means of maximising shareholder value, it has conveyed to Canal+ that – at this proposed price – the letter does not provide a basis for further engagement.”
Canal+ has been a supportive major shareholder in MultiChoice for three years, having grown its investment to become the company’s largest shareholder.
“It is the ambition of Canal+ to create an African media business with enhanced scale, which can thrive in a competitive international market, better serve its consumers with a world leading offering of sports, local and global content, and ensure that Africa can tell her story to a global audience on her own terms,” a statement said.
The media industry in which MultiChoice is operating is becoming increasingly globalised and competitive, with regional media companies having to compete with the firepower of global media titans, with enormous resources to invest in content, marketing and technology. Scale is the only way to survive and thrive in this environment.
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