MultiChoice announced Monday it would not pursue talks with Canal Plus Group after its Board concluded the €2.5 billion offer significantly undervalued the company.
On Thursday, Canal+ said a merger with MultiChoice would turn the African pay-TV business into a global media company. MultiChoice says Canal’s words need to be factored into the price. It said it had recently carried out its own valuation exercise.
“MultiChoice’s valuation excludes any potential synergies which may arise from the envisaged transaction. In this regard Canal+ has, following the lengthy discussions between the parties, repeatedly conveyed to the public what it sees as the advantages of the combined entity and therefore seemingly takes the view that there are significant synergies.
“These synergies need to be factored into any fair offer made by Canal+. Therefore, while the Board is open to all means of maximising shareholder value, it has conveyed to Canal+ that – at this proposed price – the letter does not provide a basis for further engagement.”
Canal has already accrued a stake of 35% in the Randburg-based broadcaster.
The MultiChoice business includes the DStv and Supersport brands, and its stake in the recently rebooted ShowMax streamer.
