The Takeover Regulation Panel has recently ruled that Canal+ must make a mandatory buyout offer of MultiChoice. The ruling also included a compliance notice against MultiChoice for their public discussion about the R30 billion buyout offer. Despite this, MultiChoice has launched an appeal in response to the notice.
This decision is based on an announcement made on February 5th, 2024, where MultiChoice publicly rejected Canal+’s offer to buy it at a certain price per share. The TRP stated that the publication of this announcement without their approval was unlawful and, therefore, issued a compliance notice against MultiChoice. However, this compliance notice is currently under appeal and review by MultiChoice to The Takeover Special Committee.
Canal+ has already acquired 35.01% of voting rights in MultiChoice, which triggered the mandatory offer. Therefore, Canal+ is required to make an immediate offer, in line with the requirements of the Act and the Regulations. Canal+’s initial offer to buy MultiChoice at a certain price per share valued the South African pay-TV broadcaster at over US$2,3 billion. However, MultiChoice publicly stated that the proposed offer price significantly undervalues the Group and its prospects. The pay-TV broadcaster also criticized Canal+’s announcement of its offer, which took place after discussions between Canal+ and MultiChoice lasted for well over a year.
In addition to announcing its rejection of Canal+’s offer, MultiChoice also revealed that the French TV giant had increased its shareholding in MultiChoice to 35.01%. This acquisition of more MultiChoice shares triggered the mandatory offer to which the Takeover Regulation Panel referred. However, MultiChoice previously indicated that it was unclear whether Canal+ was legally required to make a mandatory offer and asked the regulator to rule on the matter.
