Canal takes MultiChoice shareholding to 40%
French media conglomerate Groupe Canal has increased its shareholding in DStv owner MultiChoice to 40.01%.MultiChoice notified shareholders about Canal’s increased shareholding in a statement on the JSE news service on Friday.
“Some shareholders have asked whether Canal might cross the 50% shareholding in this way,” MultiChoice stated.
“We do not envisage this happening as exceeding 50% ownership would amount to a merger under the Competition Act, which would require prior approval from the Competition Tribunal.”
MultiChoice also reaffirmed that should Canal buy shares for more than R125 each, it would be obliged to increase its offer price.
The French media conglomerate made its formal mandatory offer last month after exceeding the 35% threshold stipulated in South Africa’s Companies Act.
In a statement issued on Monday, MultiChoice revealed that it had appointed Standard Bank as an independent expert to review the terms of the offer as required by South African takeover regulations.
It also announced the names of the independent board, which must provide an opinion on the offer and recommend to MultiChoice shareholders whether to accept or reject it.
Takeover rules
The board comprises MultiChoice directors Deborah Klein, Dr Fatai Sanusi, Louisa Stephens, and Andrea Zappia.
MultiChoice also revealed on Monday that Canal has continued to buy shares in the company.
By close of business on 5 April, Canal had already increased its stake from 35.01% to 36.6%.
Canal also reserved the right to continue buying MultiChoice shares on the open market while buyout negotiations continued, the companies said.
“Any such acquisitions will be reported to the [Takeover Regulation Panel] and announced to [...] shareholders,” MultiChoice said.
“If Canal acquires any additional MultiChoice shares during the course of the offer at a price higher than R125, then [...] Canal will be obliged to increase the offer price [to match],” explained MultiChoice.
Canal’s creeping takeover of MultiChoice began in 2020.