MultiChoice Group, a South African television broadcasting company, has announced that Imtiaz Patel, its Chairman, will step down immediately. This move reportedly stems from concerns about the company’s corporate governance.
The departure follows the company’s board’s announcement on April 2, 2024, that Imtiaz Patel would remain until the buyout with French media company Canal+ was completed, even though it was previously announced in September 2023 that the Chairman would step down on April 1, 2024.
As Patel steps down, Elias Masilela, who was named Deputy Chairman of the company’s board, will take over. However, as previously stated in the September 2023 announcement, Patel will continue to work as a consultant for the group until October 2028.
Patel was reinstated earlier and will stay until the Canal+ deal is completed, or sooner if the transaction progresses.
The board stated that the company was in the final stages of discussions with Canal+ about key terms of the proposed transaction.
Following that, MultiChoice and Canal+ began the process, which included signing a cooperation agreement on April 7 and issuing a firm intention announcement on April 8.
Furthermore, the transaction between the two companies has progressed to the “next phase” after some significant developments.
“Given these developments, the progress that has been achieved thus far and the fact the independent board has been constituted and will fulfill its obligations under the takeover regulations, the proposed transaction has now shifted to the next phase.”
Now, the board and Patel agree that Masilela can take over the position as planned. The board also stated that Patel would leave the board effective the day of the announcement.
Canal+ is accumulating shares at a discount while MultiChoice shares are still available for purchase on the open market. Canal+ can continue to purchase shares as long as the price is less than the mandatory offer threshold of R125 ($6.56), according to South African regulations.
