MultiChoice, a South African pay TV operator, has announced that the proposed takeover by Canal+ has now entered into the next phase. This development has led to the chair, Imtiaz Patel, leaving his position and being replaced by his deputy, Elias Masilela.
MultiChoice had requested Patel to defer his stepping-down date from the board until the negotiations were concluded. However, the recent progress achieved in the negotiations, the cooperation agreement signed by the two companies, and the constitution of an independent board to ensure that the transaction meets the country’s regulatory requirements have made it no longer necessary for Patel to delay his departure further. Therefore, Patel will step down from the board, and Masilela will take over as the new chair. Patel will continue to advise MultiChoice on a consultancy basis.
In April, Canal+ and MultiChoice agreed to the terms of the French pay TV giant’s proposed mandatory offer to acquire 100% control of the South African company. MultiChoice shareholders are to receive a price of US$65 per ordinary share, which is well above the regulatory minimum threshold of US$62.
If Canal+ successfully secures 90% of MultiChoice shares during the offer period, it can acquire any remaining shares and delist MultiChoice.
Canal+ believes that a combined group would be better placed to take on the challenge posed by the likes of Netflix and YouTube as penetration of the internet and mobile access grows in Africa. It has also stated that if its parent Vivendi’s plan to list it separately comes to fruition ahead of the end of the offer, it will look at revising its offer to give MultiChoice shareholders a chance to “have exposure to the combined group through the listing”.
