MultiChoice, a major player in South Africa’s broadcasting and entertainment landscape, has taken a significant step in response to Groupe Canal+’s recent offer to acquire the remaining shares of the company. In a move aimed at ensuring transparency and careful consideration, MultiChoice has announced the establishment of an independent board tasked with evaluating Canal+’s proposal, which values the company at approximately R55 billion.
Canal+, a French media conglomerate, has put forward an offer to purchase outstanding MultiChoice shares at R125 each, amounting to an estimated R35 billion. This formal mandatory offer was initiated after Canal+ surpassed the 35% ownership threshold outlined in South Africa’s Companies Act.
In compliance with South African takeover regulations, MultiChoice has enlisted the expertise of Standard Bank to review the terms of Canal+’s offer. Additionally, the company has unveiled the members of its independent board, charged with providing an impartial assessment of the proposal and advising MultiChoice shareholders on whether to accept or reject it.
The board includes notable figures from diverse professional backgrounds. Deborah Klein, who also serves as a non-executive director at various international organizations, joins Dr. Fatai Sanusi, a seasoned consultant in the UK National Health Service with over two decades of experience at West Hertfordshire NHS Trust. Louisa Stephens, a non-executive director at prominent institutions, and Andrea Zappia, chairman of Showmax and MCH Group, complete the board lineup, bringing a wealth of expertise to the evaluation process.
Meanwhile, Canal+ has been steadily increasing its stake in MultiChoice, with its ownership interest now standing at approximately 36.6%. The company has reaffirmed its commitment to acquiring additional shares, signaling its intent to proceed with the offer. Canal+’s ongoing purchases underscore its strategic interest in MultiChoice and its determination to solidify its position in the South African market.
However, MultiChoice has emphasized that Canal+’s offer is subject to certain conditions, including the possibility of price adjustments based on market developments. Should Canal+ acquire MultiChoice shares at a higher price during the offer period, it would be obligated to raise its offer accordingly, ensuring fair treatment of shareholders.
The trajectory of Canal+’s takeover bid traces back to 2020 when its shareholding in MultiChoice surpassed the 20% mark, prompting scrutiny regarding compliance with South Africa’s Electronic Communications Act (ECA). Despite concerns raised, MultiChoice maintains that adherence to the ECA is ensured through provisions in its memorandum of incorporation, which impose limitations on foreign ownership and control.
As the independent board begins its deliberations, all eyes are on MultiChoice shareholders, who await guidance on the proposed offer from the esteemed panel of experts. With Canal+’s bid poised to reshape the landscape of South Africa’s media industry, the outcome of this evaluation process holds significant implications for the future of MultiChoice and its stakeholders.
