MultiChoice and Groupe Canal+ have made headlines with the announcement that Canal+ now owns approximately 94.39% of MultiChoice’s issued ordinary shares.
In a statement released to investors, the companies confirmed that Canal+’s mandatory buyout offer achieved remarkable success, with over 90% of shareholders agreeing to the sale.
As a result of this overwhelming acceptance, the company announced its intention to activate section 124(1) of the Companies Act to initiate a “squeeze-out” process. This means that any remaining MultiChoice shareholders will be required to sell their shares to Canal+.
“Once the squeeze-out is implemented, MultiChoice Group will transition into a wholly-owned subsidiary of Canal+, leading to an application for the termination of MultiChoice Shares’ listing on the JSE,” the companies stated.
This application is pending approval from the South African Reserve Bank. Canal+ indicated that further announcements regarding this matter would be forthcoming.
“Following the issuance of this notice, trading of MultiChoice Shares on the JSE will be suspended, with additional details included in the notice,” the statement explained.
Following this transition, Canal+ is committed to launching an inward listing on the JSE to align with its primary listing on the London Stock Exchange, pending regulatory approvals.
The establishment of a secondary inward listing aims to maintain access for South African investors and enhance market liquidity, allowing local investors the opportunity to hold shares in a significant global media and entertainment entity on the JSE.
“This move will not only expand Canal+’s investor base but also emphasise the company’s long-term dedication to South Africa and support for the continent’s creative economy,” the statement noted.
Canal+ regards its acquisition of MultiChoice Group as the largest transaction in its history, solidifying its collective standing as a leading global media and entertainment powerhouse.
The merged entity is expected to serve over 40 million subscribers across nearly 70 countries in Africa, Europe, and Asia, backed by a workforce of around 17,000 employees.
The integration of MultiChoice and Canal+ has already commenced.
“We are thrilled with the tremendous success of the buyout offer,” commented Canal+ CEO Maxime Saada.
“With this outcome, we will proceed with the squeeze-out of remaining MultiChoice shareholders and subsequently establish a secondary inward listing for CANAL+ in Johannesburg.”
Saada emphasised the importance of local investment, stating, “From the day we announced the acquisition of MultiChoice, we committed to the market. Given Canal+’s significant role in South Africa and throughout Africa, it’s vital that domestic investors can have exposure to it.”
