MultiChoice turns down Canal+ buyout
South Africa's TV giant MultiChoice said on Monday it would end talks with France's Canal+ after rejecting a buyout offer that it said significantly undervalued the company.
Canal+, already the largest shareholder with a 30 percent stake, had proposed to purchase the remaining shares for 105 rand ($5.5) each.
MultiChoice 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.
