Canal+ Increases Ownership Stake In Multichoice

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Canal+ Increases Ownership Stake In Multichoice
Credit: © Reuters.

French media group Canal+ has bolstered its ownership stake in MultiChoice as the two firms collaborate on an acquisition effort.

Canal+ has made a mandatory offer to the minority shareholders of JSE-listed broadcaster MultiChoice Group after surpassing a threshold set by the Johannesburg Stock Exchange.

The JSE requires an offer to be made to other shareholders on a basis agreed with the main bourse when a person or group acquires at least a 35% stake in a listed company.

Canal+ proposed a mandatory offer to acquire all the issued shares of MultiChoice Group not already owned by the group at a purchase price of R125.00, payable in cash.

The French conglomerate said the offer was significantly above the regulatory minimum price for the mandatory offer, which is approximately R105.00.

MultiChoice and Canal+ have entered into a cooperation agreement regarding the offer.

However, Canal+ today announced that it has acquired an additional interest in the ordinary shares of the Company, such that the total interest in the ordinary shares o MultiChoice held by Canal+ now amounts to 40.01%.

MultiChoice “As required in terms of section 122(3)(a) of the Act, MultiChoice has filed the required notice with the

Takeover Regulation Panel (“TRP”). Further, as required in terms of section 122(3A) of the Act,

MultiChoice has filed the required notice with the Companies and Intellectual Property Commission,” said MultiChoice.

“The Board of Directors of MultiChoice accepts responsibility for the information contained in this

announcement as it relates to the Company and confirms that, to the best of its knowledge and belief,

such information relating to the Company is true and that this announcement does not omit anything

likely to affect the importance of such information.”

Not a surprise

The acquisition of additional shares by Canal+ is not a surprise.

The company stated when it made a mandatory offer that “Canal+ (either itself or through wholly owned subsidiaries) reserves the right to acquire additional MultiChoice Shares in the market during the course of the Offer in accordance with applicable law, and any such acquisitions will be reported to the TRP and announced to MultiChoice Shareholders on SENS in accordance with the requirements of the Takeover Regulations.

“If Canal+ acquires any additional MultiChoice Shares during the course of the Offer at a price higher than

ZAR 125.00, then in terms of Regulation 111(6) of Chapter 5 of the Takeover Regulations, Canal+ will be obliged to increase the Offer Price (as defined below) to not less than the highest consideration paid per MultiChoice Share so acquired, and will do so accordingly.”

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