DStv takeover continues

French media conglomerate Groupe Canal+ has acquired another 3,653,492 shares in MultiChoice, bringing its total ownership of the company to 40.83%.

It acquired the additional shares from 12 to 17 April for between R115.95 and R117.50.

“Canal+ confirms that these acquisitions have already been disclosed to the Takeover Regulation Panel (TRP) as required under the Companies Act,” the company said in a notice to MultiChoice shareholders.

“Save as may be prohibited under the Companies Act and the Takeover Regulations, Canal+ may acquire further MultiChoice Shares after the date of this announcement”.

Canal+’s latest disclosure comes a week after MultiChoice announced that the French company had crossed 40% ownership of South Africa’s pay-TV giant.

“Some shareholders have asked whether Canal+ might cross the 50% shareholding in this way,” MultiChoice stated.

“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 also reaffirmed that should Canal+ buy shares for more than R125 each, it would be obliged to increase its offer price to match.

Canal+’s creeping takeover of MultiChoice began in 2020.

When its shareholding exceeded 20%, it raised concerns that it could be violating South Africa’s Electronic Communications Act (ECA).

The Act states that a foreigner may not, whether directly or indirectly:

• Exercise control over a commercial broadcasting licensee; or
• Have a financial interest or an interest either in voting shares or paid-up capital in a commercial broadcasting licensee exceeding 20%.

MultiChoice dismissed these concerns, saying compliance with the ECA is ensured through restrictions in its memorandum of incorporation, where voting rights for foreigners collectively are limited to 20%.