MultiChoice Rejects Canal+ Offer, Citing Undervaluation Concerns

MultiChoice has officially rejected an acquisition proposal from Group Canal+ SA (“Canal+”), citing concerns over undervaluation. The cautionary announcement, released on February 1, 2024, detailed Canal+’s non-binding intention to acquire the remaining issued share capital of MultiChoice for R105 per share in cash.

The proposal came after extensive discussions between Canal+ and MultiChoice spanning over a year. Following the delivery of the proposal letter, Canal+ engaged in public discussions and interactions with the press regarding their proposal.

However, after thorough consideration, MultiChoice’s Board concluded that the offered price significantly undervalues the company and its future potential. Factors considered included MultiChoice’s recent valuation, which placed its worth substantially above R105 per share. Additionally, potential synergies resulting from the proposed transaction were not factored into the offer, despite Canal+’s assertions of their existence.

As a result, the Board conveyed to Canal+ that the proposed price did not provide a basis for further engagement. Shareholders are no longer advised to exercise caution when dealing with their securities.

MultiChoice remains open to discussions with any party offering a fair price under appropriate conditions. The Board reaffirmed its commitment to acting in the best interests of the company and will adhere to applicable takeover regulations regarding formal and binding offers.