Canal+, already the largest shareholder with a 30 per cent
stake, had proposed to purchase the remaining shares for 105 rand ($5.5) each.
The French company last week offered to acquire South
African pay-TV giant MultiChoice for around R31.7bn ($1.7bn).
In a statement issued by the Paris-based firm, Canal+ announced that it submitted a non-binding
indicative offer to MultiChoice’s board to acquire all of the issued ordinary
shares it does not already own, subject to obtaining the necessary regulatory
approvals.
MultiChoice, however, on Monday said that according to a
recent valuation exercise, the company was worth much more.
“After careful consideration, the board has concluded that
the proposed offer price of R105 in cash significantly undervalues the Group
and its future prospects,” the company said.
“Therefore… it has conveyed to Canal+ that – at this
proposed price – the letter does not provide a basis for further engagement.”
The board remained open to engage on any offer at a fair
price, it said.
Canal+, a subsidiary of the Vivendi group led by billionaire
Vincent Bollore, is present in 25 African countries through 16 subsidiaries,
and has eight million subscribers, according to the French group’s data.
Its stake in MultiChoice, Africa’s largest pay-TV
enterprise, has allowed it to gain a foothold in English-speaking and
Portuguese-speaking nations across the continent where MultiChoice has more
than 23 million subscribers in more than 50 countries.
AFP