MultiChoice chairman steps down

South African pay-TV and streaming company MultiChoice Group has announced that its chairperson, Imtiaz Patel, will step down immediately.

Patel's stepping down follows the company announcing earlier this month that it had reached an agreement with him to remain on as chairman until the completion of the pending deal with Canal+.

The French pay-TV company is looking to acquire MultiChoice, having offered to buy all the shares it does not already own in the company. Last week, Canal+ increased its shareholding in MultiChoice to 40.83%.

Patel stepping down means Elias Masilela, who was named deputy chairman of the company's board, will take over, but Patel will continue to work as a consultant for the group until October 2028.

MultiChoice previously said that Patel would stay on as chairperson until the deal is completed, or until an earlier date, based on the transaction's progress. At that time, discussions between MultiChoice and Canal+ were in the final stages.

MultiChoice, Canal+ deals

The new development comes after Canal+ recently made an all-cash mandatory offer to buy all shares of MultiChoice Group that it does not already own for R125 (US$6.70 at the time) per share.

Patel stepping down means Elias Masilela, who was named deputy chairman of the company's board, will take over, but Patel will continue to work as a consultant for the group until October 2028. (Source: Image by Freepik)

In early February 2024, Canal+ offered R105 ($5.50 at the time) per MultiChoice ordinary share – which represented a 40% premium on MultiChoice's closing share price on the JSE of R75 ($3.13) on January 31, 2024 – but MultiChoice believed this significantly undervalued the company and rejected the offer.

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The French pay-TV firm made a mandatory offer to MultiChoice shareholders to take up all the shares that it does not already own in March 2024.

*Top image source: Image by Freepik.

— Matshepo Sehloho, Associate Editor, Connecting Africa