A French media company, Groupe Canal+, has expanded its shareholding in MultiChoice through the acquisition of an additional 3,653,492 shares, bringing its total ownership in the South African media giant to 40.83%. This move follows Canal+'s previous acquisition of shares in MultiChoice, raising its ownership to 40.01%.
Canal+ informed MultiChoice shareholders that the new shares were purchased between April 12 and 17 for R115.95 ($6) and R117.50 ($6) per share. The company stated that these transactions have been disclosed to the Takeover Regulation Panel (TRP) as required by the Companies Act.
In addition, Canal+ articulated its intent to further acquire MultiChoice shares, subject to compliance with relevant regulations. The company mentioned that it has plans for additional share acquisitions beyond the date of the recent announcement.
Shortly after Canal+ surpassed the 40% shareholding threshold, MultiChoice disclosed the development to shareholders, clarifying that Canal+ had crossed the milestone. MultiChoice shared this information through a statement on the JSE news service.
The latest share acquisition would not lead to an imminent merger or acquisition, as MultiChoice assured its shareholders. There were concerns raised about Canal+ potentially exceeding the 50% shareholding limit, which could trigger a merger requiring approval from the Competition Tribunal. MultiChoice alleviated these concerns by highlighting that any share purchase exceeding R125 would necessitate an increase in Canal+'s offer price.
Canal+ initiated its bid to take over MultiChoice in 2020, aiming to establish a pan-African broadcasting powerhouse to cater to millions of subscribers spread across various countries in the region. The French media company and MultiChoice maintain strongholds in different regions of Africa, focusing on distinct language demographics.
The announcement of further share acquisitions follows Canal+'s mandatory offer last month upon exceeding the 35% ownership threshold set in South Africa's Companies Act. Concerns were raised about compliance with the Electronic Communications Act (ECA), restricting voting rights for foreigners to 20%, an issue that has been addressed through strategic solutions, including partnerships with local entities.
As MultiChoice set up an independent board to evaluate Canal+'s buyout offer, negotiations progressed while Canal+ continued to purchase the company's shares on the open market. By early April 2024, Canal+ had elevated its ownership from 35.01% to 36.6%, amplifying its strategic position in the industry. Industry analysts anticipate that this merger will bolster opportunities for showcasing African content on a global scale, enhancing competitiveness on the international stage.
