LTV says 27% of MCC accepted bid offer

LTV announced that the public offer made for the acquisition of a minimum of 25% and a maximum 100% of the share capital of Multichoice (Cyprus) Pcl (MCC) has been accepted by 27% of MCC’s shareholders until 30 May.

LTV had previously reduced the minimum number of MCC acceptance rate to 25% from 40% and since the minimum acceptance criterion of 25% has been satisfied, the success of the public offer now depends on the outcome of the Competition Commission’s decision.

This is because, LTV had said that its bid offer is conditional on the Competition Commission giving its nod to the deal and at the same time declaring its previous content distribution agreement between LTV and MCC as null and void.

LTV wants the Competition Commission to declare its exclusive deal with MCC as uncompetitive and unconstitutional in order to allow it to escape a clause in its deal with Multichoice Holdings (Cyprus) Ltd, which prohibits LTV from entering into any commercial agreements with any competing channel distribution platforms.

Such a decision would also pave the way for LTV to do as it pleases and shift its content to miVision, the digital platform of CYTA, against which a number of challenges have been filed, both with the Cyprus Competition Commission and the European Commission.

The public offer acceptance period ends on 5 June 2006.