French broadcaster, Canal+ will make a mandatory offer to MultiChoice investors to take up all the shares that it does not already own by April 8.
At the start of February, Canal+ made an offer to buy out the rest of the company at R105 a share, or just more than R31bn in what would have been the biggest M&A deal so far in SA in 2024.
The DStv owner snubbed the offer as too low for the business and its prospects, even though it is at the top end of the target price range that analysts and brokers have for the stock.
Canal+, a top shareholder in MultiChoice which had a 31.67% interest when it proposed the offer, raised its stake to 35.01% after the deal’s announcement earlier in February, just above the threshold that would require the company to make a mandatory offer to shareholders.
On Monday, the French group said it would comply with an order by the Takeover Regulation Panel (TRP), issued last week, to make the mandatory offer.
“Canal+ respects the decision taken by the panel, and will comply with it. On this basis, Canal+ confirms that it has applied for and received from the panel an exemption from adhering to the timing requirements … which requires that a firm intention announcement be made immediately when a mandatory offer is required” in terms the Companies Act, the company said in statement.
The TRP has extended the period in which Canal+ would have to make this offer by 25 business days. The Paris based company said it would publish a firm intention announcement by no later than April 8
MultiChoice shares were 2.17% firmer in early trade on Monday. Market players are likely to be waiting to see by how much more Canal+ will sweeten its offer for Africa’s largest pay TV group.
Correction: March 4 2024
An earlier version of this story incorrectly assumed Canal+ could increase its offer.
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