Canal+ Has Increased Its Shareholding In MultiChoice To 40% As The Two Companies Work On A Takeover

Despite already submitting an all-cash offer worth roughly R54 billion, Canal+ has increased its shareholding in MultiChoice from just over 35% to 40.01%

As per the Companies Act, Canal+ had to make an offer to buy the rest of MultiChoice after breaking the 35% threshold.

Canal+ has offered to buy all the shares at R125 apiece, which is being considered by a newly formed independent board at MultiChoice.

Although Canal+ was given the right to buy more MultiChoice shares earlier this week, should these shares be bought at more than R125 each, the French broadcaster would be obliged to increase the officer price to “not less than the highest consideration paid” per share bought. 

MultiChoice’s share price currently stands at just under R120 a share.

Despite Canal+ already owning 40% of MultiChoice, the latter’s memorandum of incorporation means that a foreign company’s aggregate voting power can not exceed 20% of the total voting power in the group to ensure certain statutory requirements.

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