In a significant development within the tech industry, Groupe Canal+, a prominent French media conglomerate, has escalated its investment in MultiChoice, the parent company of DStv, to a controlling interest of 40.01%.
This strategic move was disclosed to shareholders via a statement released on the Johannesburg Stock Exchange last Friday.
Speculation has arisen regarding Canal+’s potential to acquire a majority stake in MultiChoice, surpassing the 50% threshold.
However, MultiChoice has downplayed such a scenario, citing regulatory hurdles under South Africa’s Competition Act, which would necessitate approval from the Competition Tribunal in the event of a majority ownership.
Of note, should Canal+ procure shares at a price exceeding R125 each, it would be obligated to increase its offer price. This obligation stems from Canal+’s mandatory offer, initiated last month upon surpassing the 35% ownership threshold prescribed by South Africa’s Companies Act.
In its latest communication, MultiChoice has disclosed the appointment of Standard Bank as an independent evaluator to assess Canal+’s offer.
Additionally, an independent board, comprising key figures such as Deborah Klein and Dr. Fatai Sanusi, has been assembled to deliberate on the advisability of shareholders accepting the proposal.
Meanwhile, Canal+ has demonstrated proactive engagement by incrementally raising its ownership stake from 35.01% to 36.6%.
Furthermore, there is indication that Canal+ may continue acquiring shares throughout the negotiation process, albeit potentially necessitating a higher per-share payment, as outlined by MultiChoice.
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