Canal+ increases stake in MultiChoice to 18.44%
Canal+, the pay-TV unit of French media holding company Vivendi, has increased its stake in MultiChoice to 18.44%.
MultiChoice CEO Calvo Mawela revealed the increased shareholding by Canal+ during the company’s annual results presentation.
Mawela said they continue to have monthly interactions with Vivendi and that the French media likes MultiChoice, its management, and its prospects.
“Vivendi thinks MultiChoice is a well-run company that will continue to grow,” Mawela said. “They see MultiChoice as a good financial investment.”
He added that there are also areas where Canal+ and MultiChoice can work together as they are operating in different regions across Africa.
“The relationship is growing from strength to strength in identifying co-productions where we work together and getting rights and sub-licensing it to them,” he said.
Mawela said he had nothing further to add to Vivendi’s long-term plans regarding MultiChoice, apart from what he has shared previously.
In September 2021, MultiChoice revealed that Canal+ had increased its stake in the company from 12% to over 15%.
The increased shareholding sparked speculation that Vivendi, through Canal+, could be looking to take over MultiChoice.
Vivendi previously tried to acquire MultiChoice Africa, but the multi-million-dollar offer was rejected.
MultiChoice said it kept an open mind about its relationship with the company.
Commenting on Vivendi increasing its stake in MultiChoice from 15% to 18.44%, CFO Tim Jacobs said they have been buying shares off the open market.
“They are not at a notifiable stage. That will happen when they get to 20%,” Jacobs said. “They have been active in the market, picking up a few extra percent since the last announcement.”
Richard Cheesman, a senior investment analyst at Protea Capital Management, previously said they see the opportunity, means, and motivation for Canal+ to buy a larger stake in MultiChoice.
“There is little geographical overlap between MultiChoice and Canal+ in Africa, and there would be many synergies from a merger such as content costs, satellite leases, and perhaps expediting the use of the MultiChoice tax losses,” he said.
“MultiChoice and Canal+ have monthly feedback meetings and have collaborated on some content. We view this as informal due diligence being done.”
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