French entertainment company Canal+ has increased its mandatory offer to Multichoice shareholders to R125 per share.
The minimum price for the mandatory offer in terms of Regulation 111(2) of the Takeover Regulations is approximately R105 per share.
MultiChoice and Canal+ have issued a joint statement and intend to mutually co-operate, so MultiChoice will give customary exclusivity undertakings to Canal+.
Once the mandatory offer is made, the independent board of MultiChoice will be constituted and will, after receipt of the independent expert’s opinion, provide its opinion and recommendation.
Multichoice urges shareholders to exercise caution when dealing in MultiChoice securities until full details of the offer are announced.
It also draws attention to the MultiChoice memorandum of incorporation, whereby MultiChoice is permitted to reduce the voting rights of shares in MultiChoice so that the aggregate voting power of MultiChoice shares that are presumptively owned or held by foreigners will not exceed 20% of the total voting power in MultiChoice.