multichoice canal+

MultiChoice shareholders are being advised by the company’s independent board to accept a buyout offer from Canal+, a major French media company. The news comes after months of pursuit by Canal+, which has been steadily increasing its stake in MultiChoice.

The offer on the table is 125 South African Rand per share, which the MultiChoice board considers fair value for shareholders. However, before the deal can be finalized, both South African and international regulatory bodies must give their approval.

A significant hurdle lies in South Africa’s Electronic Communications Act, which restricts foreign ownership of broadcasting companies to 20% voting rights. While Canal+ already owns over 45% of MultiChoice, both companies are working on a restructuring plan to comply with this regulation.

Shareholders have until April 22, 2025, to decide whether to accept the offer. The joint circular outlining the details of the proposal is available online (links provided).

This move by Canal+ signifies their ambition to expand their presence in the African media market. MultiChoice, a leading pay-TV operator in South Africa, offers a significant foothold for Canal+ to reach a wider audience.

The next year will be crucial for both companies. They need to find a way to navigate the regulatory restrictions while ensuring the deal remains attractive to shareholders. MultiChoice’s BBBEE credentials, signifying its commitment to Broad-Based Black Economic Empowerment, must also be maintained in the restructuring process.

While the board recommends acceptance, the final decision rests with the shareholders. Whether the deal is ultimately approved will depend on the proposed restructuring plan and its ability to satisfy regulators and shareholders alike.

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Nigel Jr.
As a tech enthusiast and expert, Nigel Jr. is dedicated to providing in-depth and insightful content on all things technology. With a background in online journalism, product reviewing, and tech creation, Nigel has become a trusted source for all things tech.

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