Canal+ is now effectively in control of MultiChoice Group.
Video entertainment company MultiChoice is set to delist from the JSE after French media giant Canal+ took full control of the firm.
MultiChoice listed on the JSE in February 2019.
Canal+ told shareholders today that its offer of R125 per MultiChoice share closed at 12:00 on Friday, 10 October, with outstanding success and was accepted by MultiChoice shareholders holding 217 659 343 MultiChoice shares (which is approximately 92.54% of the offer shares).
Together with the MultiChoice shares that were already held by Canal+ prior to the Canal+ offer, these acceptances will result in Canal+ holding approximately 94.39% of MultiChoice’s total issued ordinary shares in aggregate.
“As the Canal+ offer has been accepted by MultiChoice shareholders holding more than 90% of the offer shares, Canal+ is pleased to announce that it intends to invoke the provisions of section 124(1) of the Companies Act to compulsorily acquire all of the MultiChoice shares not already held by it, at the offer consideration described in the combined circular (hereinafter referred the as the ‘Squeeze-Out’).
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“Upon the exercise of the Squeeze-Out, MultiChoice Group (MCG) will become a wholly-owned subsidiary of Canal+ and application will be made for the termination of the listing of MultiChoice Shares on the JSE in terms of paragraph 1.17(a) of the JSE listings requirements, subject to the approval of the South African Reserve Bank,” the statement reads.
Canal+ says it will publish an announcement in relation to the foregoing in due course. Once such notice is given, the MultiChoice Shares will be suspended from trading on the JSE and the notice will contain further details in that regard.
In accordance with the commitment made by Canal+ as part of the approval of the Canal+ offer by the South African competition authorities, Canal+, listed in London, will, subject to obtaining all regulatory approvals, undertake a secondary inward listing on the JSE by way of introduction (using the fast-track listing procedure).
It notes that a secondary inward listing will preserve South African investor access and market liquidity, allowing local investors to hold shares in a leading global media and entertainment company on the JSE.
“It will broaden the investor base of Canal+, reinforce the company’s long-term commitment to South Africa and Africa’s creative economy, and support continued institutional exposure to the media sector,” says the firm.
“The acquisition of MCG by Canal+ marks the largest transaction ever undertaken by Canal+, cementing the combined group’s position as a global media and entertainment company.”
The combined group will serve more than 40 million subscribers across close to 70 countries in Africa, Europe and Asia, supported by a workforce of approximately 17 000 employees.
“Canal+ is proud to stand by the commitments it made during the transaction process and remains steadfast in its belief that having a secondary listing in South Africa is important given the role the combined group now plays in South Africa and across the African continent.”
Maxime Saada, CEO of Canal+, says: “We are pleased with the overwhelming success of the offer. Following this outcome, we will be moving ahead with a squeeze-out of MultiChoice shareholders and a subsequent secondary inward listing of Canal+ in Johannesburg, in addition to our primary listing in London.
“We were clear the day we launched the acquisition of MultiChoice that this was a commitment we wanted to make. Given the important role Canal+ will now play in South Africa and across the African continent, I believe it to be critically important that domestic investors have the ability to have exposure to a leading media and entertainment company on the Johannesburg Stock Exchange while investors continue to get access to Canal+ through the London Stock Exchange.”
