MultiChoice Rejects Canal+’s $5.5 Per Share Offer, Citing Significant Undervaluation of the South African Pay-TV Giant

MultiChoice Turns Down Canal+’s Buyout Offer Over Valuation Dispute

South African pay-TV giant, MultiChoice, has officially declined a buyout offer from French media company Canal+.

Despite Canal+’s 30% stake in MultiChoice, the latter rejected the proposed offer of 105 rand (approximately $5.5) per share for the remaining shares.

MultiChoice stated that the offered price significantly undervalues the company and its future prospects.

Valuation Dispute Leads to Rejection

In a released statement, MultiChoice clarified that after careful consideration, the board concluded that the proposed offer price falls short of reflecting the true value of the group.

The rejection comes after a recent valuation, which indicated a considerably higher worth for MultiChoice.

The board conveyed to Canal+ that the offer doesn’t provide a basis for further engagement at this price.

Openness to Future Discussions

While rejecting the current offer, MultiChoice’s board expressed openness to future discussions with Canal+ under the condition that any offered price aligns more closely with the company’s perceived true value.

This move leaves room for potential negotiations if a revised offer meets MultiChoice’s valuation expectations.

Canal+’s Stakes and Ambitions

Canal+, a media company under billionaire Vincent Bolloré’s Vivendi group, holds a 30% stake in MultiChoice and operates across 25 African countries.

With 8 million subscribers, the company established a strong presence in the continent’s English-speaking and Portuguese-speaking markets.

The failed buyout bid reflects Canal+’s ambitious move to further solidify its position in Africa’s pay-TV landscape.

MultiChoice: Africa’s Pay-TV Giant

MultiChoice stands as Africa’s largest pay-TV company, boasting over 23 million subscribers across 50 countries.

The rejection of Canal+’s offer highlights the company’s commitment to securing a fair valuation that aligns with its perceived worth and future growth prospects.