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MultiChoice Group has officially rejected a buyout offer from
Canal Plus, saying the offer undervalued the African pay-TV company and its
future prospects. MultiChoice said its own calculations put the company's value
above the ZAR 105 a share offered by Canal Plus. In the meantime, it's asked
regulators whether Canal Plus must make a binding offer, after the French
company raised its stake in MultiChoice to over 35 percent.
Canal Plus announced on February 1 this year that it
submitted a non-binding indicative offer to acquire the shares it does not
already own in MultiChoice. This follows discussions between Canal Plus and
MultiChoice lasting for well over a year, according to Multichoice in a
statement to the stock market.
MultiChoice, which owns the DStv and Showmax services, said
its own valuation does not take into account any potential synergies which may
arise from a combination with Canal Plus. Nevertheless, while the board is open
to all means of maximising shareholder value, it has conveyed to Canal Plus
that – at this proposed price – the offer does not provide a basis for further
engagement, Multichoice said.
After being notified that Canal Plus has increased its
ownership in MultiChoice to 35.01 per cent from 31.07 per cent, Multichoice
filed notices with the Takeover Regulation Panel (TRP) and the Companies and
Intellectual Property Commission in South Africa.
MultiChoice asked the TRP to adjudicate on the necessity of a
mandatory offer to all ordinary shareholders.
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