Canal+ continues its share acquisition spree at Multichoice

• Canal+, a French media company, has acquired an additional 3,374,668 shares in MultiChoice, bringing its total stake to 41.59%.

• According to a report, Canal+ has confirmed that the Takeover Regulation Panel (TRP) is aware of these transactions, as required by the Companies Act and Takeover Regulations.

The French media company asserts the right to purchase additional shares unless prohibited by law.

Canal+’s previous acquisitions were at a discount to the mandatory offering price. But the shares acquired between April 18 and April 24 were priced between R115.99 and R117.59. However, MultiChoice stated that if Canal+ purchases shares for more than R125 each, the offer price will be increased accordingly.

As Canal+ continues to acquire shares in MultiChoice, some shareholders are concerned that Canal+ may cross the 50% shareholding threshold, triggering a merger.

“We do not anticipate this happening as exceeding 50% ownership would constitute a merger under the Competition Act, necessitating prior approval from the Competition Tribunal,” MultiChoice commented.

Canal+’s stake in MultiChoice surpassed 20% in 2020, and despite concerns that it was violating South Africa’s Electronic Communications Act (ECA), it continued to buy more shares, doubling its 2020 stake in the company.

On April 8, 2024, MultiChoice announced that it had entered into a “cooperation agreement” with Canal+ regarding a mandatory offer that the French media company has been directed to make. This comes after the South African Takeover Regulation Panel issued an order on February 28 and MultiChoice extended the deadline by 25 days.

While Canal+ continues to acquire shares, MultiChoice is undergoing leadership changes. Imtiaz Patel, the former Chairman of MultiChoice whose term was extended beyond his scheduled departure in early April, has recently resigned. Following his departure, Elias Masilela, appointed Deputy Chairman of the company, assumed his position immediately.

Imtiaz Patel’s contract was extended to keep him on until the buyout with French media company Canal+ was completed.

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