French media giant Canal+ has increased its shareholding stake in DStv-owner MultiChoice. MultiChoice notified shareholders that the French media company had increased its stake to 20.12 per cent.
In a statement, the pay-TV operator said, “MultiChoice remains committed to acting in the best interest of all its shareholders to create sustainable long-term shareholder value.”
“We regularly engage investors with its strategic partners and maintain an open dialogue with the investment community; its policy, however, is not to comment on its shareholders nor its interactions with them,” MultiChoice added.
The pay-TV mentioned that it had filed the required notice with the Takeover Regulation Panel as stipulated in section 122(3)(a) of South Africa’s Companies Act.
In June, the French media giant increased its stake in MultiChoice to 18.44 per cent. Before that, the pay-TV operator revealed in September 2021 that Canal+ had increased its stake in the entity from 12 per cent to over 15 per cent.
According to industry analysis, they see opportunity, means, and motivation for Canal+ to buy a more significant stake in MultiChoice.
As Canal+ continues to buy MultiChoice shares on the open market, this caused speculation that Vivendi, through Canal+, aims to take over South Africa’s pay-TV giant.
Vivendi previously tried to acquire MultiChoice Africa but later rejected the multi-million-dollar offer. However, in June, MultiChoice CEO Calvo Mawela said Vivendi sees the entity as an excellent financial investment.
“Vivendi thinks MultiChoice is a well-run company that will continue to grow,” he said.