Vivendi: Canal+ makes mandatory offer for MultiChoice

(CercleFinance.com) - Vivendi announced on Monday that its subsidiary Canal+ had filed a mandatory offer for the shares in South African MultiChoice that it does not already own, at a purchase price of 125 rand per share, payable in cash.


The media and entertainment group says that it is confident that the offer will succeed; its price far exceeds the regulatory minimum of around R105.

Canal+ points out that MultiChoice shareholders will benefit from a premium of 66.66% compared with the closing price of R75 on 1 February, i.e. prior to the announcement of its non-binding indicative offer.

At that time, the French group announced its intention to bid 105 rand for each MultiChoice ordinary share.

Canal+ explains that its ambition is to build a world leader in entertainment, with Africa at the heart of its priorities.

The company, which has 8.1 million subscribers in Africa, was already the largest shareholder in MultiChoice, a pay-TV group with a strong presence in English- and Portuguese-speaking Africa.

Its offer is to be financed entirely by its own funds.

Canal+ has also undertaken to ensure that South African investors can benefit from the future growth of the combined company through a listing on the Johannesburg Stock Exchange.


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