Canal+ again ups stake in MultiChoice

Source: MultiChoice

Canal+ has again upped its stake in South Africa’s MultiChoice by acquiring four tranches of shares between May 2-7. The latest purchases take the French pay TV outfit’s stake in the South African pay TV player to 43.54%.

In mid-April, Canal+ acquired additional shares in MultiChoice, taking its stake in the South African pay TV operator to just over 40%.

That move followed the pair’s announcement on April 8 that they had agreed the outline of a deal whereby Canal+ could bid to take full control of MultiChoice.

Canal+ subsequently increased its stake in the South African company again, though this time just edging upwards from 40.01% to 40.83%.

Now, in a regulatory filing today, MultiChoice revealed that the French pay TV operator had acquired a further 3,653,492 MultiChoice Shares in four transactions.

The new share purchases come after the South African Takeover Regulation Panel (TRP) granted the pair an extension to the period they have to finalise an agreement to be put to shareholders.

On April 8, the French pay TV operator and the South African service provider agreed to post a ‘combined circular’ to shareholders by May 7, some 20 business days later. This would have marked the point at which Canal+’s offer was open to shareholders to accept.

However, the two companies last week secured an extension until June 4.

MultiChoice said the extension was necessary to give its independent expert and the independent board enough set up to examine the deal  time to properly fulfil their responsibilities.

Canal+ and MultiChoice agreed the terms of the French pay TV operator’s proposed mandatory offer to acquire 100% control of the South African company on April 8, with MultiChoice shareholders to receive ZAR125 per ordinary share.