In a strategic move that could reshape the landscape of the broadcasting industry, MultiChoice Group has announced a significant development in its relationship with Canal+. The French media giant has been steadily increasing its stake in the JSE-listed broadcaster, prompting discussions of a potential buyout.
Following Canal+'s acquisition of more than 35% of MultiChoice's equity earlier this year, MultiChoice has confirmed its willingness to collaborate closely with Canal+ on a mandatory offer that Canal+ must make to MultiChoice's shareholders. This move underscores MultiChoice's receptiveness to Canal+'s advances and signals a potential shift in ownership dynamics within the industry.
The cooperation agreement between the two broadcasting powerhouses entails a commitment to work together on various aspects of the offer, including meeting the offer conditions and publishing a combined offer circular. Canal+ has demonstrated its continued confidence in MultiChoice by further increasing its shareholding, which now stands at 36.6%.
According to reports, Canal+ has proposed an offer of R125 per share in cash to MultiChoice shareholders, a figure significantly exceeding the minimum price required by takeover regulations. However, the completion of the deal, slated for April 8, 2025, remains subject to regulatory approvals, which could pose challenges in the transaction process.
In compliance with legal requirements, MultiChoice has established an independent board to assess the fairness and reasonableness of Canal+'s offer. If accepted by shareholders owning at least 90% of eligible MultiChoice shares, Canal+ reserves the right to delist MultiChoice from the JSE. This potential delisting could mark a notable development for South Africa's largest stock exchange, which has witnessed several companies opting for privatization in recent years.
Nevertheless, amidst talks of delisting, Canal+ has hinted at a possible opportunity for South African investors. In the event of its planned European listing, Canal+ intends to offer South African investors the chance to participate in the combined entity through a secondary inward listing on the JSE.
The proposed collaboration between Canal+ and MultiChoice has ignited speculation about the future direction of both companies and the broader broadcasting industry. As stakeholders await further developments, the outcome of this takeover deal could potentially redefine the competitive landscape and investor opportunities in the media sector.
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