Groupe Canal+, the big French media company, just bumped up its stake in MultiChoice, the company that owns DStv, to 40.01%. MultiChoice the beans to shareholders in a Johannesburg Stock Exchange news service statement.
Now, some folks are wondering if Canal+ might eventually take over the whole company and own more than 50%.
MultiChoice doesn’t see that happening anytime soon though. It says going over 50% would trigger a merger under South Africa’s Competition Act, needing a nod from the Competition Tribunal.
If Canal+ snaps up shares for more than R125 each, it has to up its offer price. Canal+ made a mandatory offer last month after crossing the 35% threshold set by South Africa’s Companies Act.
In the latest update, MultiChoice revealed it’s roped in Standard Bank as an independent expert to review Canal+’s offer. Plus, it has named an independent board to weigh in on whether shareholders should take the deal. The board includes some MultiChoice bigwigs like Deborah Klein and Dr. Fatai Sanusi.
Canal+ isn’t wasting any time either. It’s already bumped up its stake from 35.01% to 36.6%. And guess what? It might keep buying more shares while negotiations are ongoing. If it does, MultiChoice says it’ll have to cough up more money per share.
