MultiChoice: Canal+'s takeover bid rejected as it "significantly undervalues the group"

"After careful consideration, the board has concluded that the proposed offer price of ZAR 105 (€5.19 as at 02/02/2024) in cash significantly undervalues the group and its future prospects," announced South African pay-TV group MultiChoice (owner of sports pay-TV group Supersport International) on 05/02/2024.

The French pay and free-TV group Canal+ submitted a "letter containing a non-binding indicative offer to acquire all of the issued ordinary shares of MultiChoice that it does not already own, subject to obtaining the necessary regulatory approvals" to the board of MultiChoice on 01/02/2024. Canal+ made the offer at a price of ZAR 105 per MultiChoice ordinary share, representing "a premium of 40.0% to MultiChoice's closing share price of ZAR 75.00 (€3.71) on 31/01/2024."

"While the board is open to all means of maximising shareholder value, it has conveyed to Canal+ that - at this proposed price - the letter does not provide a basis for further engagement. In keeping with its duty to act in the best interests of the company, the board remains open to engage with any party in…