02 October 2024
Progess update in relation to mandatory offer by Canal+ to Multichoice shareholders
Earlier this year, MultiChoice Group Limited (“MCG”) and French media group, Groupe Canal+ SA (“Canal+”) jointly announced that Canal+ had made an offer (“the offer”) to buy all the ordinary shares of MCG that Canal+ does not already own, excluding treasury shares. Since Phuthuma Nathi owns 25% of MultiChoice South Africa, and MCG owns the remaining 75% of MultiChoice South Africa, the offer is of interest to Phuthuma Nathi shareholders.
In our previous announcement on 4 June 2024, Phuthuma Nathi shareholders were informed that MCG and Canal+ issued a combined offer circular setting out details about the offer. A copy of the offer circular is available here: https://investors.multichoice.com/regulatory.php.
We now wish to provide Phuthuma Nathi shareholders with an update on the progress of the offer. Today, 30 September 2024, Canal+ and MCG announced that:
- They have made a joint merger control filing to the Competition Commission of South Africa, as required by applicable law; and
- They are engaging with the Independent Communications Authority of South Africa (“ICASA”) and other regulatory authorities as part of the process.
We wish to remind Phuthuma Nathi shareholders that the Canal+ offer will most likely take a significant time to conclude. The process requires Canal+ and MCG to obtain various regulatory approvals and, if these are obtained, each MCG shareholder will then finally decide whether or not to accept the offer by Canal+. While the offer process is underway, the business of MultiChoice South Africa will continue as usual.
We also wish to remind Phuthuma Nathi shareholders that both Canal+ and MCG have committed themselves to Broad-Based Black Economic Empowerment in the context of the offer. The announcement released by Canal+ and MCG on the Stock Exchange News Services of the JSE Limited 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.” (emphasis added)
We remain committed to keeping Phuthuma Nathi shareholders updated as the process unfolds. Given the regulatory processes underway, further updates and details will be announced in due course.