French media giant Canal+ has snagged an additional 3,374,668 shares in MultiChoice, pushing its total ownership to 41.59%. This move follows closely on the heels of Canal+’s recent increase to a 40.08% stake in MultiChoice.
Canal+ confirms that the Takeover Regulation Panel (TRP) is in the loop about these transactions, in line with company laws and takeover regulations. Asserting its right to scoop up more shares, Canal+ remains vigilant unless legal barriers intervene.
In the recent spree from April 18 to April 24, Canal+ snagged shares at prices ranging between R115.99 and R117.59. However, MultiChoice issued a caveat: if Canal+ shells out over R125 per share, the offer price will scale up accordingly.
With Canal+ steadily expanding its share portfolio in MultiChoice, some investors are on edge about the potential breach of the 50% ownership mark, which could trigger a merger.
However, MultiChoice downplays this concern, noting that surpassing the 50% threshold would trigger a merger under the Competition Act, necessitating prior approval from the Competition Tribunal.
This latest development follows Canal+’s initial foray into MultiChoice, doubling its stake in 2020 despite initial qualms over compliance with South Africa’s Electronic Communications Act.
Amidst Canal+’s ongoing acquisition spree, MultiChoice braces for leadership changes. Imtiaz Patel, the former Chairman, who stayed on past his scheduled departure in early April, has tendered his resignation. Elias Masilela, previously Deputy Chairman, swiftly steps into the role vacated by Patel.
Patel’s contract extension was geared towards ensuring his presence until Canal+’s buyout was finalised.
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