Canal+ Moves Closer to Full Takeover of MultiChoice With 40% Stake
- Canal+ has significantly increased its stake in MultiChoice, the parent company of DStv and Gotv
- This comes after the French media firm failed to secure an outright buyout offer from the South African pay-TV company
- According to analysts, Canal+ might be targeting more share purchases to be able to eventually takeover MultiChoice
Legit.ng journalist Victor Enengedi has over a decade's experience covering Energy, MSMEs, Technology and the stock market.
The French media conglomerate Groupe Canal+ has recently obtained a 40.01% stake in MultiChoice, the parent entity of DStv.
This development was formally disclosed via the Johannesburg Stock Exchange (JSE) news platform, ending ongoing speculations regarding a prospective merger.
Source: UGC
Legit.ng earlier reported plans by Canal+ to acquire additional shares of Africa's largest pay-TV company, MultiChoice, after securing South Africa's Takeover Regulatory Panel ruling.
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The French pay-TV giant obtained 14,924,639 MultiChoice shares through a combination of on-market and off-market transactions.
Canal+ grabs significant ownership stake in MultiChoice
MultiChoice provided clarification that if a stake were to exceed 50%, a merger would be mandated under the Competition Act, necessitating prior approval from the Competition Tribunal.
MultiChoice emphasised that should Canal+'s share price surpass R125 (N7,883.39), it would trigger a mandatory increase in the offer price.
Subsequent to Canal+ surpassing the 35% shareholding threshold specified by South Africa's Companies Act and presenting its offer last month, MultiChoice has enlisted Standard Bank as an independent evaluator to evaluate the offer's conditions in accordance with South African takeover procedures.
Shareholders to be carried along
According to The Sun, MultiChoice revealed that the independent board members guided shareholders regarding the offer.
This board comprises Deborah Klein, Dr. Fatai Sanusi, Louisa Stephens, and Andrea Zappia as directors.
As of April 5, 2024, there was a significant increase in Canal+'s shareholding, rising from 35.01% to 36.6%.
Canal+ maintains the option to augment its stake further during the ongoing negotiations, while MultiChoice has pledged to inform both the takeover regulation panel and its shareholders about any additional stock acquisitions.
It would be recalled that in February 2024, MultiChoice had rejected Canal+'s buyout offer, stating that the South African pay-TV's worth was considerably higher than what the French media company was offering.
BBNaija star Phyna calls out Multichoice
Meanwhile, Legit.ng earlier reported that Phyna, a prominent reality TV personality, has stirred significant online discussions with a recent post on her X handle.
In the viral post, Phyna criticised MultiChcriticisedorganizers of the organiserseality TV program Big Brother Naija.
She highlighted that she was yet to receive all the prizes and monetary rewards promised to her for emerging as the winner of the show's seventh season.
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Source: Legit.ng
