Standard Bank, roped in as an independent expert to consider French media giant Canal+'s R125 per share offer for MultiChoice, has determined the offer is fair and reasonable.

The bank has determined a range of R113 to R129 per share for MultiChoice, with a likely value of R120, according to a Fin24 report.

The group, which is valued at around R50bn on the JSE, yesterday said its independent board also recommended that should the deal become unconditional, MultiChoice shareholders accept the offer.

Canal+, whose parent is Vivendi, operates in 50 countries across Europe, Africa and Asia, directly serving 8m customers in Africa.

The French media group had first made a R105 per share offer in February, which was rebuffed by the board of Africa's biggest pay-TV operator as too low. This was subsequently upped to R125 per share in March, a premium of two-thirds to its R75 per share price in February before the announcement was first made public.

Both parties also announced in March they agreed to work closely to ensure the transaction can be implemented, while Canal+ has built its stake to just over 45%. 

According to the circular, released yesterday, the offer will open today, with the finalisation date only eyed in April 2025, with a significant number of regulatory hurdles, including approval of competition authorities, still required.

In addition, SA places limitations on foreign ownership of local broadcast licences, meaning voting rights are capped at 20%. 

However, the parties yesterday said more details will follow on how they intend to address this.

Full Fin24 report

See also full Business Day report