“The French, renowned for their romantic pursuits, find themselves rebuffed in their latest endeavor. Multichoice, the African media giant behind DSTV and Showmax, has firmly rejected a tempting USD 1.7 billion acquisition bid from the French company Vivendi.
The Multichoice Board, after careful consideration, deemed the proposed offer of R105 in cash per share to significantly undervalue the company and its future prospects. While Vivendi currently holds a majority stake of 35.01%, Multichoice maintains its independence.
The rejection comes in light of the public discussion initiated by Vivendi Canal+, which did not sit well with Multichoice’s board. Despite ongoing behind-the-scenes takeover discussions, the board had hoped to keep the negotiations private.
The offer price, equivalent to USD 5.5 per share, was considered notably low based on a recent valuation conducted by the Multichoice board. Canal+ had valued the entire Multichoice at $2.5 billion, leading to their offer of $1.7 billion to acquire the remaining shares.
“While the Board is open to all means of maximizing shareholder value, it has conveyed to Canal+ that at this proposed price, the letter does not provide a basis for further engagement,” stated the board.
Multichoice’s availability for sale remains conditional on meeting the company’s best interests, leaving the door open for potential suitors. As of now, it continues to stand as Africa’s largest pay-TV platform.”
