Canal+ and MultiChoice agree terms of acquisition deal

Source: MultiChoice

Canal+ and MultiChoice have agreed the terms of the French pay TV giant’s proposed mandatory offer to acquire 100% control of the South African company, with MultiChoice shareholders to receive ZAR125 per ordinary share.

The price is well above the ZAR105 regulatory minimum threshold and represents a 67% premium on MultiChoice shares’ closing price on February 1. When Canal+ made its initial offer for the company.

MultiChoice has set up an independent board to consider the offer and has appointed Standard Bank of South Africa to advise it.

If Canal+ succeeds in securing 90% of MultiChoice shares during the offer period, it then has the right to acquire any remaining shares and delist MultiChoice.

Canal+ said that if the European listing goes ahead, MultiChoice shareholders will have the chance to become shareholders of the united group through a secondary listing in Johannesburg.

The French outfit said that if its parent Vivendi’s plan to list it separately comes to fruition ahead of the end of the offer, it will look at revising its offer to give MultiChoice shareholders the chance to “have exposure to the combined group through the listing”.

The French pay TV operator believes that a combined group would be better placed to take on the challenge posited by the likes of Netflix and YouTube as penetration of the internet and mobile access grows in Africa.