In a recent development concerning MultiChoice Group Limited, the Takeover Regulation Panel (TRP) has granted an extension to Groupe Canal+ SA (“Canal+”) for the submission of a mandatory offer to all ordinary shareholders of MultiChoice.
Extension Granted
The TRP’s ruling, announced on February 28, 2024, stipulated that Canal+ was required to make an immediate mandatory offer to MultiChoice shareholders under section 123 of the Companies Act, No. 71 of 2008. However, MultiChoice has disclosed that Canal+ has been given an extension of 25 business days, extending the deadline until April 8, 2024.
Board’s Response
MultiChoice’s board of directors has assured shareholders that it will continue to act in the best interests of the company and its shareholders. They have pledged to keep shareholders updated on any further developments regarding this matter.
Compliance Measures
MultiChoice also addressed compliance measures related to the voting rights of shares, aimed at ensuring adherence to South African statutory requirements. According to provisions outlined in MultiChoice’s memorandum of incorporation, the company is permitted to reduce the voting rights of shares to limit the aggregate voting power of shares owned or held by foreigners to South Africa to not exceed 20% of the total voting power in MultiChoice.
For this purpose, MultiChoice will presume that all shares deposited in terms of the American Depositary Share (ADS) facility are owned or held by foreigners to South Africa. Additionally, shareholders with addresses outside South Africa will be presumed to be foreigners, unless they provide proof to the MultiChoice board that they should not be deemed as such.
Conclusion
With the TRP granting an extension to Canal+ for the mandatory offer to MultiChoice shareholders, the situation remains dynamic. MultiChoice’s commitment to keeping shareholders informed underscores its dedication to transparency and accountability in corporate governance.
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