MultiChoice, the parent company of DStv , has issued an update to its shareholders regarding the increased investment by French media conglomerate Groupe Canal+, which has now acquired a 40.01% shareholding.
This announcement, made through the Johannesburg Stock Exchange (JSE) news service, addressed speculations about a potential merger.
MultiChoice clarified that a stake surpassing 50 per cent would necessitate a merger as per the Competition Act, requiring pre-approval from the Competition Tribunal.
The message from MultiChoice underscored that a share price exceeding R125 by Canal+ would prompt a mandatory increase in its offer price. Following Canal+’s offer last month—triggered by surpassing the 35 per cent shareholding mark as stipulated by South Africa’s Companies Act—MultiChoice has engaged Standard Bank as an independent expert to assess the offer’s terms in alignment with South African takeover protocols.
MultiChoice disclosed the independent board members responsible for advising shareholders on the offer. The board features directors Deborah Klein, Dr Fatai Sanusi, Louisa Stephens and Andrea Zappia.
With Canal+ continuing to purchase shares, a noteworthy hike from 35.01 per cent to 36.6 per cent was recorded as at April 5, 2024.
Canal+ retains the right to further increase its stake during ongoing negotiations, with MultiChoice committed to reporting any additional stock purchases to the Takeover Regulation Panel and its shareholders. (innovationvillage.com)
