Canal Plus $1.7 Billion takeover of South Africa's MultiChoice: summary
What we know
- A bid of about $1.7 billion was made by Vivendi's (VIV.PA) Canal Plus to purchase all the shares of MultiChoice Group (MCGJ.J) in South Africa that it does not already control.
- Canal Plus, the company's largest shareholder with a 31.67% stake, made an offer on February 1 for 105 rands ($5.52) per share, which was 40% more than MultiChoice's closing share price of 75 rands ($3.95) on January 31, Reuters reported.
- Following the deal's announcement last week, MultiChoice increased its holding to 35.01%, slightly beyond the minimum required for the firm to make an obligatory offer to shareholders, according to Reuters.
- On February 5, MultiChoice announced that it had asked the Takeover Regulation Panel in South Africa to rule on whether a mandatory offer must be made.
- The takeover panel in South Africa announced on February 6 that it was investigating Vivendi's Canal Plus and MultiChoice Group after MultiChoice terminated possible acquisition negotiations with its largest shareholder, Canal Plus on February 5.
- MultiChoice is the largest pay-TV on the continent which operates in 50 countries in sub-Saharan Africa.
What they said
Maxime Saada, chairman and CEO of Canal Plus, said in a statement "For MultiChoice to continue to thrive in Africa it will require a strategy that enhances its scale as well as strengthened local and global expertise. Our potential offer, if successful, would be an important next step for MultiChoice to realise its full potential.” The Takeover Regulation Panel also said in a statement "At the time of releasing this statement, the Panel is still engaging with MultiChoice and Canal+ to provide guidance and guidelines on how the matter is to be handled and addressed."
