Pan-African Pay-tv operator, Multichoice, said it has turned down the $2.5 billion acquisition offer by French media company, Canal+.
The company disclosed this in a notice to its shareholders on Monday. Multichoice said it turned down the acquisition offer because the R105 per share being proposed by Canal+ undervalues the company.
According to Multichoice, Canal+ currently holds 35.01% of the Company’s total ordinary shares in issue. The botched bid was to acquire the remainder of the entire issued share capital of MultiChoice for a proposed price of R105 per share in cash.
Multichoice rejects Canal+ takeover offer that valued it at $2.5 billion.
“After careful consideration, the Board has concluded that the proposed offer price of R105 in cash significantly undervalues the Group and its future prospects.
“While the Board is open to all means of maximising shareholder value, it
has conveyed to Canal+ that – at this proposed price – the letter does not provide a basis for further engagement.”
