MultiChoice, the South African media group owning popular sports broadcaster SuperSport, has declined a full takeover offer from French pay-TV Canal Plus.
Undervaluation Claims
MultiChoice’s board determined the offer, tendered on February 1st by Vivendi-owned Canal Plus, significantly undervalued the company. The offer equated to ZAR105 (US$5.62) per share, targeting the 68.3% of MultiChoice shares not already held by Canal Plus (31.7%).
Canal Plus, already the largest MultiChoice shareholder, acquired its initial stake in 2020 and steadily increased it. They argued a merger would create a global media powerhouse, factoring in potential synergies not reflected in the offer price.
The company acknowledged the potential synergies but emphasized that they weren’t reflected in the offer. They stated:
“Therefore, 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,” MultiChoice said.
MultiChoice operates leading pay-TV brands DStv and SuperSport. They recently relaunched their streaming platform, Showmax. Canal Plus, meanwhile, is expanding its European reach by increasing its stake in Viaplay.
