French broadcaster Canal+ must make an immediate offer for South Africa’s Multichoice after triggering its mandatory offer clause, the country’s Takeover Regulation Panel has ruled.
Earlier this month Multichoice rejected the $1.7 billion bid by Canal+ to acquire the stake in the company that it doesn’t already own.
At the time of the offer, Canal+ owned a 31.67 per cent stake at the time which rose to 35.01 per cent shortly afterwards, reaching the 35 per cent threshold where a mandatory offer is required.
Multichoice rejected the offer stating it “significantly undervalued” the group. It referred the offer to the Takeover Regulation Panel, which has now ruled that Canal+ “must take immediate action to comply with the requirements of.. the (Companies) Act and the regulations by making a mandatory offer to the remaining shareholders of MultiChoice.”
The panel also ruled that Multichoice’s public disclosure of the initial $1.7 billion offer was unlawful and issued a compliance notice against the broadcaster. MultiChoice is expected to appeal that decision.
