In a joint announcement today, MultiChoice and Canal+ addressed shareholders regarding a significant development that has caught the attention of investors and market analysts alike.

The announcement stems from the recent rulings made by the Takeover Regulation Panel (TRP) in relation to Canal+’s position within MultiChoice. On 28th February 2024, MultiChoice informed shareholders about TRP’s directive that Canal+ must initiate a mandatory offer under section 123 of the Companies Act No. 71 of 2008. Subsequently, on 4th March 2024, Canal+ disclosed that the TRP had granted an extension for the mandatory offer deadline to 8th April 2024, allowing time for the necessary financial arrangements to be finalized.

Following further deliberations between the two entities, MultiChoice and Canal+ have reached several agreements that could significantly impact MultiChoice’s shareholder landscape:

  1. Price Increase: Despite the minimum offer price mandated by the Takeover Regulations being approximately ZAR105 per MultiChoice ordinary share, Canal+ has opted to raise the cash consideration to ZAR125 per MultiChoice ordinary share, demonstrating a commitment to the offer’s success.
  2. Mutual Cooperation: Both MultiChoice and Canal+ have expressed their intent to collaborate closely throughout the process. MultiChoice has pledged customary exclusivity undertakings to Canal+, ensuring a smooth and efficient transaction.
  3. Independent Evaluation: Once the mandatory offer is formally presented, MultiChoice’s Independent Board will be constituted. This board will assess the offer’s terms and conditions, seeking guidance from an Independent Expert’s opinion before providing its own recommendation to shareholders.

The announcement also underlines the potential material effect the mandatory offer may have on MultiChoice’s securities. As such, shareholders are urged to exercise caution when trading MultiChoice securities until comprehensive details regarding the offer are made available.

This joint announcement marks a pivotal moment in the ongoing relationship between MultiChoice and Canal+. With significant financial implications and strategic considerations at play, all eyes remain on the unfolding developments as the deadline for the mandatory offer approaches.

As the market eagerly awaits further updates, stakeholders are poised to react to any subsequent disclosures that could shape the future trajectory of both companies.

For more information and updates, shareholders are advised to monitor official communications from MultiChoice and Canal+ closely.