The MultiChoice Group has turned down a bid by Vivendi SE’s Canal+ to become the majority shareholder in the company, stating that the proposed price does not reflect the true value of the business.
Last week, the French company moved to acquire the remaining 61 per cent stake in MultiChoice at a proposed offer price of 105 rands ($5.55) per share in cash, totalling $2.5 billion. However, MultiChoice rebuffed the offer, arguing that it “significantly undervalues the group and its prospects.”
MultiChoice conducted its own evaluation, which indicated that the company’s value is substantially higher than 105 rand per share. Notably, the valuation presented by Canal+ did not account for the potential synergies that could arise from a prospective deal.
With a current ownership stake of 35.01 percent, Canal+ is already the largest shareholder in MultiChoice, surpassing the threshold that necessitates a mandatory offer.
In response to the bid, MultiChoice filed a notice with South Africa’s Takeover Regulation Panel, requesting a ruling on whether such an offer should be extended to all shareholders.
In a separate statement on Monday, MultiChoice expressed its willingness to engage with any party regarding an offer that is deemed fair and is subject to appropriate conditions.
