Canal+ Takes its Stake in MultiChoice Beyond 30%

MultiChoice Nigeria

Groupe Canal+ has again increased its stake in MultiChoice, acquiring more than 30% of it, according to a regulatory filing.

Groupe Canal+, the French pay-television company owned by Vivendi, has again increased its stake in MultiChoice, the parent of DStv, and has now acquired more than 30% of the JSE-listed broadcaster’s equity, according to a regulatory filing.

MultiChoice said on Friday in a statement issued via the JSE’s stock exchange news service that Canal+ has increased its stake to 30.3% of the total ordinary shares in issue.

Canal+ has steadily been buying shares in MultiChoice since 2020. Last September, it ramped up its buying, increasing its stake from 20.1% – disclosed last July – to 26.3%.

MultiChoice Nigeria
MultiChoice Nigeria

Canal+ previously told MultiChoice that it views the stake as a financial investment

The move once again raises questions about Canal+’s ultimate intentions, specifically whether it plans to make an offer to MultiChoice’s minorities – a move that could be difficult to execute given South Africa’s restrictions around the foreign ownership of broadcasters.

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“Whether it’s Canal+ or someone else, we have a responsibility as directors of the company to do what is in the best interests of shareholders,” MultiChoice Group chief financial officer Jacobs was quoted as saying.

“Whatever opportunity comes our way, we will try to keep an open mind. We will certainly look at it and say, ‘Is this in the best interest of shareholders or not?’ If it is, we’d need to embrace it and make the best deal we can for shareholders,” Jacobs said.

Canal+ previously told MultiChoice that it views the stake as a financial investment. The two companies have worked together for years, sharing content between their respective markets.

Compliance

At face value, the latest disclosed stake appears to be higher than what’s permitted under South African legislation, which limits foreign ownership of South African broadcasters to 20%.

However, MultiChoice signalled in its statement on Friday about Canal+’s increased stake that it will remain compliant with the rules around foreign ownership.

It explained that a provision in its memorandum of incorporation permits it to reduce the voting rights of shares so that the aggregate voting power of shares held by foreigners is kept below 20% of the total voting power in the company.

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“This is to ensure compliance with certain statutory requirements applicable to South Africa,” it said. For this purpose, MultiChoice will assume all shares deposited under an American Depository Receipts programme are held by foreigners, regardless of their actual nationality. Also, all shareholders with an address outside South Africa will be deemed to be foreigners unless they can prove otherwise.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry

Canal+ Has Raised Its Stake in MultiChoice Group

MultiChoice Group chief operating officer Simon Camerer

Leading cable television company, Canal+ owned by French media conglomerate Vivendi, which years ago saw MultiChoice displacing it in many markets across Africa, especially the Francophone countries resorted to acquiring shares in MultiChoice Group since 2020, has now significantly increased its stake.

In a regulatory filing on Wednesday, JSE-listed MultiChoice said Groupe Canal+ has increased its stake from the 20.1% disclosed in July to 26.26% now.

The move again raises questions about Canal+’s ultimate intentions, specifically whether it plans to make an offer to MultiChoice’s minorities – a move that could be difficult to execute given South Africa’s restrictions around the foreign ownership of broadcasters. 

MultiChoice Group chief operating officer Simon Camerer
MultiChoice Group chief operating officer Simon Camerer

The move again raises questions about Canal+’s ultimate intentions — whether it plans to make an offer to minorities

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“MultiChoice remains committed to acting in the best interests of all shareholders and to create sustainable, long-term shareholder value. While the group regularly engages investors and maintains an open dialogue with the investment community, its policy is not to comment on its individual shareholders nor on its interactions with them,” the pay-TV operator said, repeating an earlier statement about Canal+’s share purchases.

Canal+ began buying shares in MultiChoice in 2020. MultiChoice disclosed in July this year that the French company, which has pay-TV operations in francophone Africa that largely complement MultiChoice’s African footprint, had increased its stake to just over 20%. Its previous disclosure was in November 2021, when it said the French group had bought 15.4% of its ordinary shares in issue.

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When Canal+ began buying up MultiChoice shares in 2020, it prompted speculation about the company’s intentions. It also fuelled a sharp rally in MultiChoice’s share price at the time. MultiChoice first disclosed on 5 October 2020 that Canal+ had acquired 6.5% of its equity.

‘A responsibility’

“Whether it’s Canal+ or someone else, we have a responsibility as directors of the company to do what is in the best interests of shareholders,” MultiChoice Group chief financial officer Jacobs told TechCentral in an interview in November 2020. 

“Whatever opportunity comes our way, we will try to keep an open mind. We will certainly look at it and say, ‘Is this in the best interest of shareholders or not?’ If it is, we’d need to embrace it and make the best deal we can for shareholders,” Jacobs said.

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Canal+ previously told MultiChoice that it views the stake as a financial investment. The two companies have worked together for years, sharing content between their respective markets. “We have an ongoing relationship with them in various territories,” Jacobs said at the time.

Kelechi Deca

Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry