French media conglomerate Groupe Canal+ has recently expanded its ownership in MultiChoice, the owner of South Africa’s pay-TV giant DStv. The company has acquired an additional 3,374,668 shares, increasing its total ownership to 41.59%. The transaction was made between 18 to 24 April for a price range of US$6.09 to US$6.18.
Canal+ has confirmed that the acquisitions have already been disclosed to the Takeover Regulation Panel (TRP) as required under the Companies Act and the Takeover Regulations. The company also reserved the right to buy more shares, except as prohibited by legislation.
Two weeks prior to this, MultiChoice had announced that Canal+ had already crossed 40% ownership. Canal+ had also notified shareholders last week that it had increased its stake to around 40.8%. However, MultiChoice has stated that it does not envision Canal+ crossing the 50% shareholding as it would require prior approval from the Competition Tribunal.
Canal+ began its creeping takeover of MultiChoice in 2020. When its shareholding exceeded 20%, it raised concerns that it could be violating South Africa’s Electronic Communications Act (ECA). However, MultiChoice dismissed these concerns, stating that compliance with the ECA is ensured through restrictions in its memorandum of incorporation, where voting rights for foreigners collectively are limited to 20%.
