Canal+ has acquired additional shares in MultiChoice, upping its stake in the South African pay TV operator to just over 40%.
Details
The French pay TV operator revealed that it had acquired a further 14,924,639 MultiChoice shares in a series of on and off-market transactions.
This follows the announcement on April 8 that they had agreed on the outline of a deal whereby Canal+ could bid to acquire MultiChoice.
Under the terms of the April 8 agreement, Canal+ reserved the right to make further acquisitions of shares. However, if it pays over ZAR125 a share for any shares acquired, it will be obliged to revise the terms of its bid.
MultiChoice has set up an independent board to consider the offer and has appointed Standard Bank of South Africa to advise it.
What Happens Next
If Canal+ succeeds in securing 90% of MultiChoice shares during the offer period, it then has the right to acquire any remaining shares and delist MultiChoice.
If parent company Vivendi’s plan to separately list Canal+ goes ahead, MultiChoice shareholders will have the chance to become shareholders of the united group through a secondary listing in Johannesburg.
If Vivendi’s plan to list the pay TV operator separately comes to fruition ahead of the end of Canal+’s offer for MultiChoice, it will look at revising its offer to give MultiChoice shareholders the chance to “have exposure to the combined group through the listing”.
Source: Digitaltveurope
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