MultiChoice, the DStv operator, has firmly rejected a buyout offer from French entertainment giant Canal+, citing that the proposed price of R105 in cash significantly undervalues the company and its future prospects.
- While rejecting the current offer, MultiChoice has expressed willingness for further negotiations if Canal+ decides to improve the offer price. The current valuation of R46 billion falls short of MultiChoice’s perceived value.
- MultiChoice rebuffed the proposal after conducting its own valuation exercise and carefully weighing the offer. The current price represents a 40% premium over MultiChoice’s closing price on January 31.
- Canal+ positioned the buyout as an opportunity to create a dominant African media business, expanding operations across key markets in South Africa, Nigeria, Senegal, and Cameroon.
- Canal+ has recently increased its stake in MultiChoice, raising its shareholding to 35% from approximately 32%. This move indicates Canal+’s interest in acquiring a controlling stake.
- MultiChoice has sought intervention from the Takeover Regulation Panel, requesting a ruling on whether a mandatory offer should be made to all ordinary shareholders under the Companies Act’s section 123. This adds a regulatory aspect to the potential buyout.
- MultiChoice’s rejection of the current offer reflects its confidence in its future growth and potential. The company believes it deserves a valuation that better aligns with its market position and trajectory for success.