The French media company Canal+ announced they had increased their shares in MultiChoice from 35% to 40.01%. the company bought some of their additional shares from the open market.
The move comes after Canal+ not long ago made an offer to buy Multichoice ordinary shares for $2.9 billion, which was declined.
Looking at the latest strategic moves by Canal+, it remains confident and committed that it will reach its end goal at some stage of acquiring MultiChoice – DSTV, a South African paid television.
MultiChoice issued a statement said: “Holders of ordinary shares in MultiChoice are advised that MultiChoice has received formal notification, in terms of section 122(1) of the Act, that French media company Groupe Canal+ SA has acquired an additional interest in the ordinary shares of the company, such that the total interest in the ordinary shares of the company held by Canal+ now amounts to 40.01% of the company’s total ordinary shares in issue.”
MultiChoice has since submitted the requisite notification to the Takeover Regulation Panel (TRP) in accordance with Section 122(3) (a) of the Act. Furthermore, as required under Section 122(3A) of the Act, MultiChoice also submitted the requisite notice with the Companies and Intellectual Property Commission.
Back story: Last September, MultiChoice told investors that Patel would step down effective 1 April 2024, making way for Elias Masilela to step into the role at a pivotal time for the JSE-listed broadcaster, which is currently the subject of a takeover bid by French broadcasting giant, Groupe Canal+.
“In view of the recent ruling by the Takeover Regulation Panel that required Canal+ to make an immediate mandatory offer to all MultiChoice shareholders … the MultiChoice board has reached an agreement with Imtiaz Patel to remain on as chair,” it said on Tuesday.
“The board believes there is significant benefit in continuity at this time, and Mr Patel has agreed to extend his tenure until the conclusion of the Canal+ transaction or such sooner date as may be determined in light of progress on the transaction.”
