Canal+ Moves to Acquire MultiChoice's Remaining Shares, Sets Date for Final Takeover

• Canal+ has set April 8 as the date to purchase additional shares in MultiChoice, the owners of GOtv and DStv
• The firm was mandated by South Africa’s Takeover Regulatory Commission to make the announcement
• The decision comes as the pay-TV company increased its subscription price in less than two months

Legit.ng’s Pascal Oparada has reported Tech, Energy, Stocks, Investment and the Economy for over a decade.

Canal+ has announced its intention to acquire additional shares of Africa’s largest pay-TV company, MultiChoice, by April 8 after securing South Africa’s Takeover Regulatory Panel ruling.

The panel asked Canal+ to make a solid intention announcement because of its 35.01% shareholding in the pay-tv company, which has triggered a mandatory offer requirement.

Panel mandates additional shares acquisition

Canal+ agreed to the decision, securing an exemption from timing requirements and getting an extension not exceeding 25 business days from the panel.

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Reports say the French company previously offered to acquire the remaining shares of MultiChoice at 105 rands per share, making a 40% premium over MultiChoice's close share price of R75 on January 31, 2024.

MultiChoice, however, rejected the offer, stating that Canal+ undervalued the company.

Canal+ is Multichoice's largest shareholder

MultiChoice’s board has restated that its commitment is to act in the best interest of the company and shareholders.

Canal+ saw its shares in the MultiChoice rise by 2.56%. The company is MultiChoice’s biggest shareholder, with a 35.01% stake.

MultiChoice, the owner of Showmax, a streaming service in Africa that is trying to compete with Netflix, has exploited Africa’s growing entertainment industry.

ThisDay reported that Canal+’s plan to acquire MultiChoice aligns with French Billionaire Bollore’s plan to take advantage of Africa’s burgeoning entertainment market.

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Nigerians attack Multichoice over hike in prices

Legit.ng reported that telephone and cable television service subscribers have called on the federal government to intervene immediately with the new pricing of paid TV subscriptions.

This is after an earlier report that Multichoice, the South African parent company of Digital Satellite Television (DSTV) and Go Television (GOTV), recently announced a price review.

Source: Legit.ng