The French are known for romance and courtship. However, in their latest venture, it appears they have failed. African media giant Multichoice has said no to a lucrative deal from French company Vivendi.
“After careful consideration, the Board has concluded that the proposed offer price is of R105 in cash significantly undervalues the Group and its future prospects”
Multichoice which owns both DSTV and Showmax has turned down the USD 1.7 billion acquisition offer. The offer which was announced last week would have seen, Vivendi fully own Multichoice. For now, the French media giant remains a majority shareholder holder with 35.01%.
The Multichoice board was not impressed by Vivendi Canal+ openly discussing the matter in public. It has been revealed that the take over discussions have been ongoing behind the scenes and the board had wished to keep the talks private.
Further, the offer price of Rand 105 (USD 5.5) for every share was deemed significantly low. This was based on recent valuation carried out by the Multichoice board. Canal+ valuation had entire Multichoice at $2.5 Billion. This is why they offered $1.7 billion to buy the rest of the shares they currently don’t own.
“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.” the statement from the board added.
Multichoice Available for Sale
It is worth noting that the board has made it clear it will continue acting in the best interest of the company. This means, should an acceptable offer be placed on the table, the board is open to engage.
Basically, Multichoice is available for sale, subject to all conditions being met by the buyer. For now, it still remains Africa’s biggest pay TV platform.