MultiChoice turned down Canal+’s initial offer, but the two parties have now entered into exclusive negotiations in pursuit of the deal. Photo: Independent Newspapers
Imtiaz Patel will stay on as chairperson of the JSE-listed pay television and streaming giant MultiChoice, which is a takeover target for France’s Canal+.
MultiChoice turned down Canal+’s initial offer, but the two parties have now entered into exclusive negotiations in pursuit of the deal. Patel, who was set to step down as the chairperson of MultiChoice at the end of last month, is now staying on in the role until the finalisation of Canal+’s acquisition of the South African entertainment group.
“In view of the recent ruling by the Takeover Regulation Panel that required Canal+ to make an immediate mandatory offer to all MultiChoice shareholders and the cautionary SENS notice issued on 5 March 2024 in this regard, the MultiChoice Board has reached an agreement with Imtiaz Patel to remain on as chair,” MultiChoice said yesterday.
Canal+ raised its offer for MultiChoice to R125 per share last month after its first offer of R105 was rejected by the South African company in February this year. Shares in MultiChoice fell 1.29% in afternoon trade on the JSE yesterday to R112.13.
MultiChoice explained yesterday that it believed that there was “significant benefit in continuity at this time” while “Patel has agreed to extend his tenure until the conclusion of the Canal+ transaction or such sooner date as may be determined in light of progress” on the transaction.
Elias Masilela, a long-standing non-executive director who had been designated to take over from Patel, becomes deputy chairperson effective the beginning of this month.
“The board expresses its gratitude to Patel for extending his tenure and to Masilela for taking on the new roles on the board.”
Despite suffering a 7% decline in subscriber numbers in the South African market between the first and third quarters of 2023, MultiChoice has sought to revamp its offerings through its recent relaunch of Showmax, helping it broaden its opportunities.
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