Talk about corporate intrigue: just weeks after announcing that its chairman, Imtiaz Patel, would stay on to oversee a possible deal with Groupe Canal+, MultiChoice Group on Tuesday announced Patel’s exit from the role with immediate effect.

The move comes amid concerns about corporate governance at the broadcaster, which is the subject of a takeover bid by France’s Canal+.

In a surprise move, MultiChoice said on 2 April — following a board meeting before the Easter weekend — that it had rescinded a previous announcement that Patel would step down, with board member Elias Masilela due to take up the chairmanship from 1 April.

“In view of the recent ruling by the Takeover Regulation Panel that required Canal+ to make an immediate mandatory offer to all MultiChoice shareholders … the MultiChoice board has reached an agreement with Imtiaz Patel to remain on as chair,” the company said at the time.

“The board believes there is significant benefit in continuity at this time, and Mr Patel has agreed to extend his tenure until the conclusion of the Canal+ transaction or such sooner date as may be determined in light of progress on the transaction,” it said then.

Now, just three weeks later, Patel is stepping down – this time apparently for good.

Explaining why Patel is leaving, just three weeks after the board decided he should stay on, MultiChoice told investors that at the time of the announcement on 2 April, discussions were in their final stages on key terms of the proposed transaction with Canal+.

‘Next phase’

“These culminated in MultiChoice and Canal+ entering into a co-operation agreement on 7 April and issuing a firm intention announcement on 8 April, with the material terms of the proposed transaction recorded in these documents,” it said.

“Given these developments, the progress that has been achieved thus far and the fact the independent board has been constituted and will fulfil its obligations under the takeover regulations, the proposed transaction has now shifted to the next phase.

Read: Canal+ steps up MultiChoice buying spree

“The board and Mr Patel have therefore agreed that now would be an appropriate time for Mr Masilela, the current deputy chair, to be appointed as chair as planned and for Mr Patel to step down from the board with effect from the date of this announcement.”

The decision that Patel would stay on as chairman was met with concern in some quarters.

“The decision to extend his tenure … seems odd as Masilela has also been on the MultiChoice board since 2018 and does not need Patel to babysit him over a transaction that may take many years to approve given the restriction of 20% ownership of local broadcasters,” Miyelani Shikwambana, founder and CEO at Thandiso Advisory and a former director of Brunswick, wrote in a recent column in the Sunday Times (paywall).