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MultiChoice rejects Canal+’s acquisition bid, cites undervaluation



Canal+’s $1.6 billion takeover offer was rejected by MultiChoice, the pay-TV provider in South Africa, who attributed the rejection to the company’s undervaluation.

The French media giant Canal+ put in a bid to buy MultiChoice on February 1, 2024, and was rejected shortly after.

The pay-TV provider expressed unhappiness with the proposed price, claiming that Canal+’s offer drastically undervalues the company. The MultiChoice Board expressed its readiness to discuss offers that are reasonable in cost and contingent upon suitable terms with any interested parties.

Canal+, which currently holds a 35.01% stake in MultiChoice, had revealed its intention to acquire the remaining ownership by submitting a non-binding indicative offer of R105 ($5.6) per share. This offer represented a 40% premium over MultiChoice’s closing share price of R75 ($4) on January 31, 2024.


The proposal valued MultiChoice at over R46 billion ($2.4 billion), with Canal+ intending to pay R32.5 billion ($1.7 billion) in cash for the remaining 64.99% ownership it does not currently possess.

However, MultiChoice, in a statement issued on Monday, disclosed that a recent valuation exercise had indicated a higher worth for the company. The Board concluded that Canal+’s proposed offer price significantly undervalues the Group and its prospects.

In response to Canal+’s bid, MultiChoice conveyed to the French media company that, at the proposed price, the letter does not provide a basis for further engagement. While MultiChoice affirmed its openness to maximizing shareholder value through various means, it emphasized that Canal+’s offer did not meet the company’s valuation expectations.

Furthermore, MultiChoice reiterated its commitment to adhering to takeover regulations and conducting its duties diligently in the event of any formal and binding offer. The company emphasized the importance of following regulatory guidelines to ensure a fair and transparent process in any potential acquisition negotiations.

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