South African regulator gives MultiChoice and Canal+ more time

Source: MultiChoice

South Africa’s Takeover Regulation Panel (TRP) has granted MultiChoice and Canal+ an extension to the period they have to finalise an agreement to be put to shareholders.

On April 8, the French pay TV operator and the South African service provider agreed to post a ‘combined circular’ to shareholders by May 7, some 20 business days later. This would have marked the point at which Canal+’s offer was open to shareholders to accept.

The pair have now secured an extension until June 4.

MultiChoice said the extension was necessary to give its independent expert and the independent board enough set up to examine the deal  time to properly fulfil their responsibilities.

Canal+ and MultiChoice agreed the terms of the French pay TV operator’s proposed mandatory offer to acquire 100% control of the South African company on April 8, with MultiChoice shareholders to receive ZAR125 per ordinary share.

The price was 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 set up an independent board to consider the offer and 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.

Since the outline agreement, Canal+ has acquired further shares in MultiChoice, taking its stake to above 40%.