04 June 2024
Combined Circular To Multichoice Group Shareholders In Relation To Mandatory Offer By Canal+
On 8 April 2024, the MultiChoice Group (“MultiChoice”) and the French media group Canal+ issued an announcement via SENS, explaining that Canal+ had made an offer to buy all the shares of the MultiChoice Group. Because Phuthuma Nathi owns 25% of MultiChoice South Africa, with MultiChoice Group owning the remaining 75%, the proposed Canal+ transaction is of interest to Phuthuma Nathi shareholders.
Today, as required by law, the next step in the process took place. A combined offer circular was issued via SENS, which provides additional details about the offer.
In our previous announcement released to you on 23 April 2024, we conveyed a few important points, which we want to repeat:
- The Canal+ offer will take a significant time to conclude. The process requires Canal+ to obtain various regulatory approvals and, if these are obtained, MultiChoice Group shareholders will then finally decide whether or not to accept the offer by Canal+.
- During this time, the business of MultiChoice South Africa will continue as usual. The question of dividends to be paid to Phuthuma Nathi during this time will be decided by the board of MultiChoice South Africa. It will be based purely on financial performance of the South African business.
- Canal+ and the MultiChoice Group have committed themselves to Broad-Based Black Economic Empowerment. This commitment was reiterated in the recently released Offer Circular, which states:
“Canal+ and MultiChoice recognise that the economic transformation of South Africa and Broad-Based Black Economic Empowerment (BBBEE) are imperatives both in the wider context and for MultiChoice.
Canal+ intends to support MultiChoice in its continued efforts to foster BBBEE initiatives and the transformation of its South African business as a commercial and societal imperative. Canal+ is fully committed to maintaining MultiChoice’s BBBEE credentials and acknowledges the key role played by Phuthuma Nathi in this regard.”
Lastly, we point out that the Offer Circular explains that Canal+ and the MultiChoice Group are in the process of assessing and finalising suitable structuring options and potential transactions to ensure compliance with the applicable limitations on foreign control, while also maintaining MultiChoice’s BBBEE credentials. No agreement has been reached between the parties yet. Canal+ and MultiChoice Group will provide further details as soon as reasonably practicable.
We remain committed to keep Phuthuma Nathi shareholders updated as things progress further. In the meantime, you can read all about the Canal+ mandatory offer to MultiChoice Group shareholders on the MultiChoice website.