• Friday, April 19, 2024
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BusinessDay

Canal+ deal forces MultiChoice to extend chairman’s tenure

Canal+ increases MultiChoice stake to 40.8%

The MultiChoice board has agreed with Imtiaz Patel to remain as chairman until the ongoing Canal+ transaction is completed.

This was after the video entertainment group’s previous announcement that Patel would step down as its chairman, effective 1 April.

Read also: Canal+ raises bid for MultiChoice as exclusive talks begin

In a shareholder update issued today, MultiChoice said it believes that “there is significant benefit in continuity at this time and Patel has agreed to extend his tenure until the conclusion of the Canal+ transaction or such sooner date as may be determined in light of progress on the transaction.”

Canal+ owns more than 35 percent of the shares in MultiChoice. In early February, the French media giant confirmed it had submitted a letter to MultiChoice’s board of directors containing a non-binding indicative offer to acquire all the issued ordinary shares of MultiChoice that it does not already own, subject to obtaining the necessary regulatory approvals.

The offer was for R105 per share in MultiChoice, which would represent a 40 percent premium on MultiChoice’s closing share price of R75 on 31 January 2024. However, MultiChoice rejected the offer, claiming it undervalued the company.

At the end of February, the Takeover Regulation Panel in South Africa ordered Canal+ to make a “mandatory offer immediately” for the remaining shares in MultiChoice that it did not already own after it crossed a certain percentage shareholding.

Canal+ has since raised its offer price to R125 per MultiChoice ordinary share.