Although Canal+ has a 35.01% stake in the Pay-TV company, MultiChoice, the South African regulators have ordered the French media giant to acquire more shares of MultiChoice.
The 35.01% stake owned by Canal+, makes the company the largest shareholder in the company triggering a mandatory buy clause as Canal+ surpass the 35% threshold. However, MultiChoice is rejecting the outright purchase offer stating that the bid for 105 rand per share is undervaluing the company’s actually worth.
The reason however for this mandatory bid for takeover is in compliance with the requirements of the (companies) act and regulations which requires any shareholder who surpasses the 35% stake mark to make an offer to the shareholders of MultiChoice.
However, Canal+ has stated that its hands are tied from making a mandatory bid as restrictions from MultiChoice’s memorandum of incorporation, which states that foreign companies are limited to a maximum of 20% voting right.
