South Africa’s Takeover Regulations Panel (TRP) has ruled that French media company Canal+, owned by Vivendi, must make a mandatory offer immediately to buy the remaining shares of pay-TV company MultiChoice.Canal+, the biggest shareholder, offered to buy the rest of the company for €2.5 billion earlier this February. It held a 31.67 per cent stake at the time which rose to 35.01 per cent shortly afterwards, passing a 35 per cent threshold where a mandatory offer is required.Its offer of 105 rand (€5.06) per share was rejected by the board of MultiChoice on the grounds that it undervalued the group.“The panel rules that Canal+ must take immediate action to comply with the requirements of the (Companies) Act and the regulations by making a mandatory offer to the remaining shareholders of MultiChoice,” the Takeover Regulations Panel (TRP) said in its ruling.The TRP rejected Canal+’s argument that it was not required to make a mandatory offer as MultiChoice’s memorandum of incorporation restricts foreign companies from holding more than 20 per cent of the broadcaster’s voting rights.
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