French media conglomerate Groupe Canal+ has announced its acquisition of an additional 3,653,492 shares in South African media giant MultiChoice, bolstering its ownership to 40.83%. This move follows a previous increase to 40.01% just a week prior.
Groupe Canal+ revealed that the acquisition, which took place between April 12th and April 17th, was executed at prices ranging between R115.95 ($6) and R117.50 ($6) per share. The company affirmed compliance with regulatory protocols, emphasizing that all acquisitions had been disclosed to the Takeover Regulation Panel as required by the Companies Act.
Moreover, Groupe Canal+ expressed its intention to further increase its stake in MultiChoice, subject to regulatory approvals.
This development comes in the wake of Groupe Canal+'s recent attainment of a 40% ownership share in MultiChoice, as disclosed by MultiChoice through the JSE news service. In response to inquiries from investors regarding potential implications, MultiChoice assured shareholders that the increased ownership would not result in an immediate merger or acquisition.
However, MultiChoice clarified that exceeding the 50% ownership threshold would necessitate approval from the Competition Tribunal, as stipulated by the Competition Act.
Groupe Canal+'s strategic interest in MultiChoice traces back to 2020 when the French media group announced its ambition to create a pan-African broadcasting powerhouse. This bid aligns with Groupe Canal+'s extensive reach in French-speaking African nations, complementing MultiChoice's dominance in English-speaking territories such as South Africa, Nigeria, and Kenya.
Anticipating transformative shifts in Africa's media landscape driven by technological advancements, Groupe Canal+ aims to leverage this strategic partnership to expand its offerings and consolidate its presence in the region.
Addressing regulatory concerns, Maxime Saada, chairman and CEO of Canal+ Group, emphasized the company's commitment to compliance with local regulations. Similarly, MultiChoice underscored its adherence to regulatory imperatives through internal protocols ensuring compliance with stringent ownership requirements.
In response to Groupe Canal+'s overtures, MultiChoice established an independent board tasked with evaluating Canal+'s offer to acquire outstanding shares. Comprising esteemed directors, including Deborah Klein and Dr. Fatai Sanusi, among others, this board reflects MultiChoice's commitment to transparency and governance.
Meanwhile, Groupe Canal+ retains the prerogative to continue acquiring MultiChoice shares on the open market, signaling ongoing negotiations.
Analysts anticipate that this strategic partnership between Groupe Canal+ and MultiChoice will not only amplify the global reach of African content but also position both companies to compete more effectively in the international market.
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