Vivendi’s Canal+ Stake Triggers Mandatory Offer for MultiChoice

Loni Prinsloo, Bloomberg News

(Bloomberg) -- Vivendi SE’s Canal+ has to make a mandatory offer for MultiChoice Group after it increased its shareholding in the African pay-TV business to more than 35%, according to a ruling by South Africa’s Takeover Regulation Panel.

The Takeover Regulation Panel issued the ruling after MultiChoice announced on Feb. 5 that Canal+’s holdings of its issued shares exceed the threshold that South African law requires for a company to make a mandatory offer to shareholders, according to a statement on Wednesday. The Johannesburg-based firm asked the panel to rule on whether such an offer was required.

The ruling could give Canal+ fresh impetus to bring an improved offer to MultiChoice shareholders after the company’s board rejected a proposed price of 105 rand ($5.48) per share that valued the business’s shares at 46 billion rand. That price undervalued the business, the board said.

Read More: MultiChoice Says Vivendi Offer Price Undervalues the Business

MultiChoice has said it is allowed to limit the voting rights of shares held by foreigners to 20%.