Creeping takeover of MultiChoice — Canal+ increases ownership

French media giant Groupe Canal+ has acquired 4,731,709 more shares in DStv’s parent company, bringing its total ownership in MultiChoice to 43.54%.

It acquired the shares between 2 and 7 May 2024, with prices ranging from R119.42 and R119.98.

“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 said.

“After the aforementioned trades are implemented, Canal+ will hold an aggregate of approximately 43.54% of the MultiChoice Shares in issue.”

It added that it reserves the right to buy more shares where not prohibited by law.

Canal+ has been steadily adding to its already substantial MultiChoice holdings since April 2024. Its creeping takeover of the company began in October 2020.

The French media giant last notified the market that it had increased its MultiChoice stake to around 41.6% on Thursday, 25 April 2024.

Canal+ has been disclosing its on-market purchases of MultiChoice stock through the Takeover Regulation Panel weekly since the companies revealed its stake had surpassed 40%.

“Some shareholders have asked whether Canal+ might cross the 50% shareholding in this way,” MultiChoice said in a media statement following the disclosure.

“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 previously explained that Canal+ would be forced to increase its offer price if it were to buy shares for more than R125 each.