DStv creeping takeover continues
French media conglomerate Groupe Canal+ has acquired another 3,868,391 shares in DStv owner MultiChoice, bringing its total ownership of the company to 42.47%.
It acquired the additional shares from 25 to 30 April for between R118.05 and R120.00 each.
“Canal+ confirms that these acquisitions have already been disclosed to the Takeover Regulation Panel (TRP) as required under the Companies Act and [the Takeover Regulations],” it stated.
Canal+ said it reserved the right to buy more shares, except as prohibited by legislation.
The French media conglomerate’s latest disclosure comes after a series of similar announcements from MultiChoice and itself.
Three weeks ago, MultiChoice announced that Canal+ had crossed 40% ownership of South Africa’s pay-TV giant.
Canal+ has since issued weekly announcements revealing that it has continued to buy up MultiChoice stock.
“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 to match.
Canal+’s creeping takeover of MultiChoice began in 2020.
When its shareholding exceeded 20%, it raised concerns that it could be violating South Africa’s Electronic Communications Act (ECA).
The Act states that a foreigner may not, whether directly or indirectly:
- Exercise control over a commercial broadcasting licensee; or
- Have a financial interest or an interest either in voting shares or paid-up capital in a commercial broadcasting licensee exceeding 20%.
MultiChoice dismissed these concerns, saying compliance with the ECA is ensured through restrictions in its memorandum of incorporation, where voting rights for foreigners collectively are limited to 20%.
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