Canal+ edges closer to MultiChoice takeover

French pay-TV company Canal+ is edging closer to fully acquiring South African pay-TV and streaming company MultiChoice Group by increasing its stake closer to 50%.

The announcement comes exactly a week after the French pay-TV company increased its shareholding in MultiChoice to 40.01%.

In a statement issued via the Johannesburg Stock Exchange (JSE), MultiChoice informed its shareholders that Canal+ said it acquired the additional shares from April 12 to 17, 2024.

The French company said it acquired 3.65 million shares in that period and has said it could buy more in the open market as it pursues its plan to acquire control of the South African pay-TV and streaming company.

According to the filing, Canal+ acquired the following shares in recent days:

Friday, April 12, 2024: About 1.82 million shares in on- and off-market transactions for an average consideration of 117.50 South African rands (US$6.10) per share;

Monday, April 15, 2024: Some 810,000 shares in on- and off-market transactions for an average consideration of R115.99 ($6.04) per share;

Tuesday, April 16, 2024: About 1.01 million shares in on- and off-market transactions for an average consideration of R115.95 ($6.04) per share; and

Wednesday, April 17, 2024: Some 5,100 shares in on- and off-market transactions for an average consideration of R116 ($6.05) per share.

"After the aforementioned trades are implemented, Canal+ will hold an aggregate of approximately 40,83% of the MultiChoice shares in issue," the statement added.

Furthermore, Canal+ said these acquisitions were already disclosed to South Africa's Takeover Regulation Panel as required under relevant regulations, and it may acquire further MultiChoice shares.

Canal+, MultiChoice recent trades

The new development comes after Canal+ recently made an all-cash mandatory offer to buy all shares it does not already own of MultiChoice Group for R125 ($6.70 at the time) per share.

At the time, Canal+ owned 35% shares in the South African company. However, today, in a statement issued via the Johannesburg Stock Exchange (JSE), the pay-TV and streaming company informed its shareholders the Canal+ stake increased to 40%.

Recently, MultiChoice extended Chairperson Imtiaz Patel's tenure until the ongoing deal was completed.

Patel's tenure was extended following South Africa's Takeover Regulation Panel ruling that Canal+ must make a mandatory offer to buy MultiChoice after it acquired over 35% of the company on the open market.

Canal+ said these acquisitions were already disclosed to South Africa's Takeover Regulation Panel as required under relevant regulations, and it may acquire further MultiChoice shares. (Source: Freepik)

Then, in early February 2024, Canal+ offered R105 ($5.50 at the time) per MultiChoice ordinary share – which represented a 40% premium on MultiChoice's closing share price on the JSE of R75 ($3.13) on January 31, 2024. But MultiChoice believed the offer significantly undervalued the company and rejected the offer.

The French pay-TV firm made a mandatory offer to MultiChoice shareholders to take up all the shares that it does not already own in March 2024.

According to media reports, Canal+ will have 90% share of the African pay-TV market, if its takeover of MultiChoice Group is successful.

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Furthermore, if its takeover of MultiChoice is successful, Canal+ will have the right to delist the South African country from the JSE.

The two companies said they intend to post a combined circular to MultiChoice shareholders by May 7, 2024.

*Top image source: Canal+.

— Matshepo Sehloho, Associate Editor, Connecting Africa