Vivendi’s Canal+ stake triggers mandatory offer for MultiChoice

Vivendi SE’s Canal+ has to make a mandatory offer for MultiChoice Group after it increased its shareholding in the African pay-TV business to more than 35%, according to a ruling by South Africa’s Takeover Regulation Panel.

The Takeover Regulation Panel issued the ruling after MultiChoice announced on Feb. 5 that Canal+’s holdings of its issued shares exceed the threshold that South African law requires for a company to make a mandatory offer to shareholders, according to a statement on Wednesday. The Johannesburg-based firm asked the panel to rule on whether such an offer was required.

The ruling could give Canal+ fresh impetus to bring an improved offer to MultiChoice shareholders after the company’s board rejected a proposed price of 105 rand ($5.48) per share that valued the business’s shares at 46 billion rand. That price undervalued the business, the board said.

MultiChoice has said it is allowed to limit the voting rights of shares held by foreigners to 20%. Bloomberg