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Canal Plus tables $2.9bn offer to buy MultiChoice
As expected, Canal Plus today made a mandatory offer to buy the outstanding shares in MultiChoice it doesn't already own. It was required to do so by South Africa takeover authorities after it passed the 35 per cent ownership threshold in MultiChoice earlier this year.
The mandatory offer has come in at the speculated price of R125 per share. This is than the initial pitch off R105 per share, which the MultiChoice board had rejected saying it undervalued the firm. The new price is also 66.6 per cent higher than the closing price of R75 a share on February 1st, before the deal action began. CNBC Africa is joined by Maxime Saada, Chairman & CEO of Canal Plus.
Mon, 08 Apr 2024 11:00:22 GMT
Disclaimer: The following content is generated automatically by a GPT AI and may not be accurate. To verify the details, please watch the video
AI Generated Summary
- Canal Plus makes mandatory offer to buy the remaining MultiChoice shares at R125 per share, a 66.6 per cent premium over the initial offer rejected by MultiChoice
- Extensive discussions between Canal Plus and MultiChoice management have led to the higher offer, highlighting the benefits of a potential merger
- An independent board, including Standard Bank, will now review the offer's merits, with a circular formalizing the offer expected to be published within 20 business days
Canal Plus has made a mandatory offer to purchase the outstanding shares in MultiChoice that it does not already own, as required by South African takeover authorities after reaching the 35 per cent ownership threshold. Earlier this year, MultiChoice rejected an initial offer of around R105 per share, deeming it undervalued. However, Canal Plus has now come back with a higher offer of R125 per share, a 66.6 per cent premium over the closing price of R75 a share on February 1st, before the deal action began. Maxime Saada, Chairman & CEO of Canal Plus, stated that extensive discussions with MultiChoice management and the board have led to the increased offer, highlighting the significant benefits of a combined entity. An independent board will now evaluate the offer's merits, with a circular formalizing the offer expected to be published within the next 20 business days.
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