Canal+ has increased its stake in MultiChoice, a South African broadcaster, since February, when its ownership surpassed 35%.
Now, with a stake of 40.8%, it’s aiming to take over even more. Last week, between April 12 and 15, Canal+ snagged 3.5 million MultiChoice shares at a lower price than its mandatory offer.
Despite regulatory hurdles, Canal+ seems determined to make the acquisition happen. South African law mandates a mandatory offer for all outstanding shares once a stake exceeds 35%. However, foreign entities are limited to 20% of voting rights in acquired broadcasting companies.
This hasn’t deterred Canal+, which is strategically buying up shares at a discount, potentially saving a significant amount of money. Until the deal is finalised, MultiChoice shares remain fair game on the open market.
According to South African law, Canal+ can keep buying shares as long as it’s below the mandatory offer price of R125. The fact that MultiChoice shares are still trading below the offer price suggests that the market isn’t overly optimistic about the deal going through.
