South Africa’s Takeover Regulation Panel (TRP) has ruled that Canal+, the French broadcaster, must now make a mandatory offer to MultiChoice’s ordinary shareholders after its stake in the company crossed the 35% threshold. 

According to the Companies Act of 2008 and JSE Listings Requirements, Canal+ must immediately make a bid for the outstanding MultiChoice shares it does not own. 

The mandatory offer will come three weeks after Canal+’s initial $1.7 billion bid for outstanding shares. 

“The Board has concluded that the proposed offer price of R105 in cash significantly undervalues the Group and its future prospects,” the company told shareholders in a public statement rejecting the bid on February 1. 

However, the Takeover Regulation Panel ruled Wednesday that Multichoice’s public disclosure of the initial $1.7 billion offer was unlawful and issued a compliance notice against the broadcaster. MultiChoice will appeal that decision.

Canal+ increased its focus on Africa in the past decade and has grown from just 1 million African subscribers in 2016 to 7.6 million in 2023. In July 2019, it bought ROK Studios, a prolific Nigerian film production company, from IrokoTV to increase its slate of original content offerings.

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