MultiChoice and French-based media giant Canal+ have reached a cooperation agreement regarding the offer to buy out the video entertainment group.
This, says a joint statement, is in line with the timeline agreed with the Takeover Regulation Panel (TRP), an entity that reports to the Department Trade, Industry and Competition.
According to the statement, Canal+ proposed a mandatory offer to acquire all the issued shares of MultiChoice Group not already owned by the group at a purchase price of R125 per share, payable in cash.
The offer will be fully paid for by funds available to Canal+, it states, adding that the TRP has been furnished with an irrevocable unconditional bank guarantee.
In line with standard procedure and as set out in the joint announcement, MultiChoice has constituted an independent board, which has appointed Standard Bank as an independent expert to express a view on the fairness and reasonableness of the terms of the offer.
In making the offer, Canal+ says it is confident about the future it can build with MultiChoice.
Maxime Saada, chairman and CEO of Canal+ Group, says: “Following constructive engagement with MultiChoice, we are pleased to have issued a joint firm intention announcement to make an offer today, representing a significant premium for the shareholders of MultiChoice.
“Through combining our companies, we will be well-positioned to invest even more in local productions and sports content. The complementary geographies, considerable scale, and strengthened capabilities achieved by the combination of these two companies will ensure that Africa can tell her own stories on her own terms both locally and globally.
“We are excited about these opportunities, which will be supported by further investment in technology, including the continued offering of a leading satellite service, and rolling out more innovative streaming products.”
MultiChoice’s buyout by Canal+ has been on the cards since February, but the initial buyout offer of R105 per share was rejected by the South African video entertainment group.
Last week, MultiChoice announced that outgoing chairman Imtiaz Patel would remain in his role until the completion of the ongoing Canal+ transaction. It was previously announced that Patel would step down as the video entertainment group’s chairman with effect from 1 April.
The offer will be conditional on customary regulatory approval for a transaction of this nature, and will comply with all other relevant regulatory requirements, concludes the statement.
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