In a significant development within the media and entertainment sector, CANAL+ has made a mandatory offer to acquire all outstanding shares of MultiChoice Group that it does not already own. The offer, priced at ZAR125.00 per share, is substantially higher than the regulatory minimum, set at approximately ZAR105.00, and represents a 66.66% premium over the closing price on 1 February 2024. This strategic move comes after detailed discussions between senior representatives of CANAL+ and MultiChoice and follows the timeline agreed with the Takeover Regulation Panel (TRP).
To facilitate the offer, CANAL+ and MultiChoice have entered into a cooperation agreement, ensuring the offer’s funding through an irrevocable unconditional bank guarantee provided to the TRP. To assess the fairness and reasonableness of the offer, MultiChoice has formed an Independent Board and appointed Standard Bank as an independent expert.
This acquisition promises significant advantages for all stakeholders involved. MultiChoice shareholders are offered an attractive opportunity to realize value from their shares in cash, marking a considerable premium. Furthermore, the integration into CANAL+, a global entertainment leader with a strong focus on Africa, promises enhanced competitive and cooperative capacities against major international media conglomerates, streaming platforms, and studios.
Following constructive engagement with MultiChoice, we are pleased to have issued a joint firm intention announcement to make an offer today, representing a significant premium for the shareholders of MultiChoice. CANAL+ is confident in making this offer, at a level which far exceeds the minimum required by regulation, due to the incredible future we believe that CANAL+ and MultiChoice can build together.
Through combining our companies, we will be well positioned to invest even more in local productions and sports content, supporting the world-leading and vibrant creative ecosystem on the African continent and all over the world, and producing even more high-quality and compelling local stories. The complementary geographies, considerable scale, and strengthened capabilities achieved by the combination of these two great companies will ensure that Africa can tell her own stories on her own terms both locally and globally.
We are excited about these opportunities, which will be supported by further investment in technology, including the continued offering of a leading satellite service, and rolling out more innovative streaming products.
Maxime Saada, Chairman and CEO, CANAL+ Group
