French broadcasting giant CANAL+ Group has boosted its ownership in South African pay-TV leader MultiChoice Group, now holding a 40.83% stake.
The acquisition was disclosed in a statement on Thursday, reflecting Canal+’s ongoing efforts to expand its influence in Africa, where it currently has eight million customers and acquires majority stakes.
Its journey towards this majority stake began nearly four years ago with an initial purchase in October 2020, and it has since steadily accumulated shares in MultiChoice.
Recent reports reveal that Canal+ acquired 3.5 million MultiChoice shares between April 12 and 15 at an average price of R116 per share, notably below the mandatory share offer price of R125.
The recent move by Canal+ raises questions about potential merger implications and regulatory oversight. MultiChoice shareholders have sought clarity on Groupe Canal+'s intentions, with MultiChoice emphasizing the complexities of exceeding a 50% ownership threshold.
Moreover, MultiChoice has outlined measures to ensure compliance with South African Electronic Communications Act regulations amidst Groupe Canal+'s increasing influence.
