According to a joint announcement by MultiChoice and Groupe Canal+, the French media behemoth currently owns roughly 94.39 per cent of MultiChoice’s issued ordinary shares.
In a statement Monday morning, the companies told investors that more than 90 per cent of shareholders agreed to sell, making Canal+’s mandatory buyout offer a remarkable success.
The company stated that it will use section 124(1) of the Companies Act to start a “squeeze-out” since over 90 per cent of non-Canal+ shareholders agreed to sell.
As a result, all MultiChoice shareholders still holding out will be required to sell to Canal+. The buyout price per share is R125.
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“Upon the exercise of the squeeze-out, MultiChoice Group will become a wholly-owned subsidiary of Canal+, and an application will be made for the termination of the listing of MultiChoice Shares on the JSE,” they said.
The application remains subject to the approval of the South African Reserve Bank. Canal+ promised to release a statement regarding this as soon as possible.
“Once such notice is given, the MultiChoice Shares will be suspended from trading on the JSE, and the notice will contain further details in that regard,” it said.
Subsequently, Canal+ declared it would fulfil its promise to initiate an inward listing on the JSE for its principal listing on the MSE. Getting regulatory approvals is another requirement for this.
“A secondary inward listing will preserve South African investor access and market liquidity, allowing local investors to hold shares in a leading global media and entertainment company on the JSE,” it said.
“It will broaden the investor base of Canal+, reinforce the company’s long-term commitment to South Africa and Africa’s creative economy, and support continued institutional exposure to the media sector.”
Biggest deal ever
According to Canal+, the purchase of MultiChoice Group is its biggest deal ever and solidifies the combined group’s standing as a major player in the global media and entertainment industry.
With a workforce of about 17,000 employees, the combined company will provide services to over 40 million subscribers in nearly 70 African, European, and Asian countries.
It said the integration of MultiChoice and Canal+ has now started to take place.
“We are pleased with the overwhelming success of the offer,” said Canal+ CEO Maxime Saada.
“Following this outcome, we will be moving ahead with a squeeze-out of MultiChoice shareholders and a subsequent secondary inward listing of CANAL+ in Johannesburg.”
Saada stated that they were certain that they wished to make this commitment on the day they started the acquisition of MultiChoice.
“Given the important role Canal+ will now play in South Africa and across the African continent, I believe it to be critically important that domestic investors have the ability to have exposure to it,” she added.