Pan-African pay-TV giant Multichoice has firmly rejected a $2.5 billion acquisition bid from French media company Canal+. In a notice to shareholders on Monday, Multichoice declared the proposed offer of $105 per share undervalued the company, signaling a definitive stance against the takeover.

According to Multichoice, Canal+ presently holds a 35.01% stake in the company. The failed bid aimed to secure the remaining shares at a proposed price of $105 per share in cash.

In a statement withdrawing its earlier cautionary message to shareholders, Multichoice outlined its reasons for rebuffing the offer. It stated that a recent valuation exercise had revealed the true worth of its shares to be significantly higher than the proposed $105 mark. Furthermore, the valuation did not include potential synergies that could arise from the envisioned transaction.

Multichoice emphasized that despite Canal+’s assertions of the advantages of a combined entity and the anticipated synergies, the proposed offer fell short of adequately reflecting Multichoice’s value and prospects.

“While open to maximizing shareholder value through any means, the Board has conveyed to Canal+ that, at the proposed price, further engagement is unwarranted,” Multichoice stated. The board underscored its commitment to engaging with any party offering a fair price under appropriate conditions, adhering to takeover regulations and acting in the best interests of the company and its shareholders.

Last Thursday, Vivendi SE’s Canal+ had tabled the acquisition proposal, valuing Multichoice Group at 46 billion rand ($2.5 billion). The offer represented a 40% premium to Multichoice’s recent closing price, aligning with Vivendi’s strategy to integrate Canal+’s local operations with Multichoice, potentially creating a conglomerate boasting close to 50 million subscribers.