Pan-African pay-TV operator MultiChoice, with a market value of $2.15 billion, has rejected a buyout offer from French media giant Canal+. The non-binding proposal, valued at R105 per share, was deemed a significant undervaluation by MultiChoice's board.
While this might seem like a setback for Canal+, analysts believe the pursuit may not be over. Canal+ has steadily increased its stake in MultiChoice since 2020, currently holding close to 35%, the threshold for a mandatory takeover offer in South Africa.
MultiChoice has even approached regulators seeking clarification on whether Canal+ is obligated to make such an offer, hinting at potential legal challenges ahead. Additionally, Canal+'s parent company, Vivendi, has experience with hostile takeovers, suggesting they might not back down easily.
This situation sets the stage for a potential power struggle between the two companies. MultiChoice remains confident in its future prospects and considers the offer insufficient, while Canal+ appears determined to expand its African reach. Investors are closely watching how this saga unfolds, with implications for the future of pay-TV in Africa.
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