Regulator rules Canal+ must make a takeover offer for MultiChoice

The Takeover Regulation Panel (TRP) has ruled that French media giant Canal+ must make a mandatory takeover offer for DStv owner MultiChoice "immediately" after concluding SA's restrictions on foreign ownership don't completely eliminate all of its voting rights.

In early February, Canal+ had indicated it was interested in paying R105 per share for Africa's biggest pay-TV operator but was rebuffed by its board, which said this undervalued it.

At the same time, Canal+ also increased its stake in the group to over 35% from 31.7%, just above a threshold that would require the company to make a mandatory offer to shareholders. Complicating matters, however, is the fact that SA's Electronic Communications Act of 2005 places limitations on foreign ownership of local broadcast licences. This means Canal+ can increase its shareholding in MultiChoice to any level, but its voting rights are limited to a maximum of 20%.