MultiChoice, the pan-African broadcaster with a market capitalisation of $2.15 billion, has expectedly turned down a non-binding acquisition offer by Canal+, the Vivendi-owned pay-TV company. MultiChoice told shareholders it would not entertain the offer of R105 per share, a 40% premium on MultiChoice’s then-share price. 

“After careful consideration, the Board has concluded that the proposed offer price of R105 in cash significantly undervalues the Group and its future prospects,” MultiChoice said in a statement to the Johannesburg Stock Exchange. 

It is unlikely that Canal+ will consider the rejection as a sign to end its pursuit of MultiChoice, having begun increasing its stake in the company since 2020. Additionally, Vivendi, Canal+ parent company, is familiar with the complexities and intricacies of hostile takeovers, having engineered at least two similar takeovers.

The French broadcaster continues to mop up MultiChoice shares as it pushes its way to the 35% limit, according to a regulatory filing seen by TechCabal.

Per South African law, a stake of more than 35% would require Canal+ to make a mandatory offer to MultiChoice shareholders. 

“MultiChoice has also requested the [regulator] to make a ruling as to whether a mandatory offer must be made to all holders of ordinary shares in [MultiChoice],” another filing made on Monday morning said. “A further announcement will be released if there are further developments.”

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