While MultiChoice debates selling, Canal+ is buying more shares

  • MultiChoice has alerted its shareholders to the fact that Canal+ now owns 40 percent of its ordinary shares.
  • While MultiChoice considers Canal’s latest offer, the French media firm is within its rights to purchase more shares.
  • The DStv owner hasn’t said whether it will accept or reject the Canal+ acquisition offer.

French media conglomerate Canal+ is going to get its hands on MultiChoice one way or another.

The French firm has been purchasing MultiChoice shares en masse for the last two years, culminating in an acquisition offer earlier this year that MultiChoice rejected. Canal+ was, however, forced to make another offer when it acquired over 35 percent of MultiChoice’s shares.

While the board of directors mulls the offer, Canal+ is still hoovering up MultiChoice shares.

On Friday morning, the broadcaster alerted shareholders to the fact that Canal+ now owns 40.01 percent of the firm’s ordinary shares.

“In accordance with section 122(3)(b) of the Companies Act, 71 of 2008 (“the Act”), regulation 121(2)(b) of the Companies Regulations, 2011 and paragraph 3.83(b) of the JSE Limited Listings Requirements, holders of ordinary shares in MultiChoice are advised that MultiChoice has received formal notification, in terms of section 122(1) of the Act, that French media company Groupe Canal+ SA (“Canal+”) has acquired an additional interest in the ordinary shares of the Company, such that the total interest in the ordinary shares of the Company held by Canal+ now amounts to 40.01% of the Company’s total ordinary shares in issue,” MultiChoice told shareholders.

The DStv owner has informed the Takeover Regulation Panel and the Companies and Intellectual Property Commission about this development.

To be clear, French media conglomerate is entirely within its rights to continue purchasing shares so long as its not paying above the R125 per share it offered MultiChoice. If the French firm is paying more, then its offer needs to mirror that price.

We’re sure that MultiChoice wants to do its due diligence before signing on the dotted line but Canal+ is also seemingly not going to stop buying up any shares it can.

With that in mind, we suspect it won’t be long now before MultiChoice decides which path to take.


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