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Groupe Canal+ has raised its offer to buy all the shares of JSE-listed MultiChoice Group that it does not already own, the two companies said on Tuesday. Canal+, the biggest shareholder in MultiChoice, with a 35% stake, has agreed to raise its bid to R125/share, or 19%, from its earlier offer price of R105/share. On Monday, it emerged that Canal+ requested, and received , an extension to the Takeover Regulation Panel’s ruling that it had to make a mandatory offer to MultiChoice shareholders after the South African broadcaster had rejected a R105/share offer, saying it significantly undervalued the group . MultiChoice and Canal+ intend to mutually co-operate in this regard “Following further discussions, Canal+ and MultiChoice have agreed to advise MultiChoice shareholders that while the minimum price for the mandatory offer in terms of regulation 111(2) of the takeover regulations is approximately R105 per MultiChoice ordinary share, Canal+ has agreed to increase the price to make the mandatory offer at a cash consideration of R125 per MultiChoice ordinary share,” the JSE-listed group said in a statement to shareholders before markets opened in Johannesburg on Tuesday. “MultiChoice and Canal+ intend to mutually co-operate in this regard. Accordingly, MultiChoice will give customary exclusivity undertakings to Canal+,” it said. “Once the mandatory offer is made, the independent board of MultiChoice will be constituted and will, after receipt of the independent expert’s opinion, provide its opinion and recommendation on the mandatory offer.” MultiChoice shares, which closed at R109 on Monday, are likely to surge higher when markets open at 9am in Johannesburg. — (c) 2024 NewsCentral Media, with additional reporting (c) 2024 Reuters Get breaking news alerts from TechCentral on WhatsApp
