TechCentral has a look at what Canal+ must do now to comply with takeover regulations in its pursuit of MultiChoice.
As per the regulations, Canal+ plus must now make a “firm intention announcement” to MultiChoice shareholders. Section 111 of the companies regulations – an adjunct to the Companies Act – stipulates that the offer price must be, at a minimum, the highest price that Canal+ has paid for acquiring MultiChoice shares in the last six months.
“However, regulation 111 allows for deviations from the highest-price-paid principle if the offeror believes that it is not applicable in a particular case. An offeror may consult the , which has the discretion to agree to an adjusted offer consideration if it deems it appropriate under the circumstances,” according to the regulations.
It is unclear what the highest price is that Canal+ paid for MultiChoice shares in the last six months, but from historical share price data, the value must be a minimum of between R63/share and R92/share – well below the R105/share the French broadcaster has said it is prepared to pay shareholders to secure a deal.MultiChoice shares peaked at R105/share earlier this month following the Canal+ indicative offer, which MultiChoice rebuffed as “undervaluing” the company. It touched R105.
It is possible, of course, that MultiChoice’s shareholders will rebuff the forthcoming mandatory offer by Canal+ if they don’t like the offer price. If shareholders choose to, they could vote to waive the mandatory offer by holding a vote and then notifying the TRP of their decision.
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