The French media group Canal+ has increased its stake in South African media giant MultiChoice to 40.83%. Their actions reveal a strong intent to gain control of Africa’s largest pay-TV company.
The company said in a statement on Thursday that the on- and off-market acquisitions had been disclosed to SA’s takeover regulation panel.
In February, Canal+’s stake in MultiChoice passed the 35% mark, which triggered a law that allowed it to present a mandatory offer to shareholders of MultiChoice.
Canal+ bought MultiChoice 3.5 million shares for an average of R116 per share. The newly bought shares are lower than the mandatory share offer of R125.
“The 3 million shares acquired would have cost R30 million more had they been purchased at the offer price, so Canal+ is saving a lot of money,” said Jimmy Moyaha, founder of investment firm Lebowa Capital.
It has increased its stake from 36.6% as of April 8, buying shares from April 12 to April 17 at 117.50 Rand, 115.99 Rand, 115.95 Rand, and 116 Rand per share. The offer at 125 rand per share is with the board of MultiChoice awaiting approval.
