24 April 2024
Joint announcement: offer by Canal+ in respect of MultiChoice Group
On 8 April 2024, the MultiChoice Group and the French media group Canal+ issued an announcement via SENS. The announcement explained that Canal+ had made an offer to buy all the shares of the MultiChoice Group.
The proposed Canal+ transaction is of interest to Phuthuma Nathi shareholders because the Phuthuma Nathi owns 25% of MultiChoice South Africa. The rest of MultiChoice South Africa is owned by the MultiChoice Group.
It is important to emphasise three points.
First, the Canal+ offer will follow a process that will take a significant time to conclude. This process includes Canal+ having to obtain various regulatory approvals and MultiChoice Group shareholders having to decide whether or not to accept the offer by Canal+.
Second, during the process of the offer being considered by shareholders and regulators, the business of MultiChoice South Africa will continue in the ordinary course. During this process, MultiChoice South Africa dividends to Phuthuma Nathi will also be determined and declared in the ordinary course. Those dividends are decided by the board of MultiChoice South Africa and are based on financial performance of the South African business. It is only that financial performance that affects Phuthuma Nathi dividends.
Third, both Canal+ and the MultiChoice Group have committed themselves to Broad-Based Black Economic Empowerment. The SENS issued on 8 April 2024 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.”