Canal+, the French pay-TV giant owned by Vivendi SE, has increased its offer to buy MultiChoice to $2.9 billion, a week after a regulatory panel mandated the French broadcaster to make an offer to MultiChoice’s ordinary shareholders.

The new bid translates to an offer of 125 rand per share, a 20% increase from the initial offer of 105 rand, per reporting from Bloomberg. MultiChoice has a fiduciary responsibility to inform its shareholders about the new offer.

South Africa’s Takeover Regulation Panel (TRP) has issued Canal+ a 25-business day extension which lapses on the 8th of April, to submit a mandatory bid to purchase shares of the pay-TV company, Multichoice. Canal+ has stated that it will comply and respect the panel’s decision. 

Since 2020, the French company has increased its stake in MultiChoice from 20.1% to 35.01% in February 2023. Per South African law, a more than 35% stake would require Canal+ to make a mandatory offer to MultiChoice shareholders.

In February, MultiChoice, which has a market capitalisation of $2.15 billion, turned down a non-binding acquisition offer by Canal+. MultiChoice told shareholders at the time it considered the offer undervalued.