French media giant buys up more Multichoice

 ·14 May 2024

French multimedia group Canal+ has continued its streak of purchasing Multichoice shares, edging its way up to the 50% mark.

On Tuesday (14 May), the group announced three transactions over the past week, where it increased its stake in the South African media group to 45.2%.

This represents a further acquisition of 7,374,918 MultiChoice Shares through on/off market transactions.

These include:

  • On Wednesday, 8 May 2024, Canal+ acquired 4,709,759 MultiChoice Shares for an average consideration of ZAR 119,66 per MultiChoice Share

  • On Thursday, 9 May 2024, Canal+ acquired 387,354 MultiChoice Shares for an average consideration of ZAR 119,44 per MultiChoice Share

  • On Friday, 10 May 2024, Canal+ acquired 2,277,805 MultiChoice Shares for an average consideration of ZAR 119,68 per MultiChoice Share

“After the aforementioned trades are implemented, Canal+ will hold an aggregate of approximately
45.20% of the MultiChoice Shares in issue,” it said.

“Canal+ confirms that these acquisitions have already been disclosed to the Takeover Regulation Panel (TRP) as required under the Companies Act.”

Canal+ has been disclosing its on-market purchases of MultiChoice stock through the Takeover Regulation Panel weekly since the companies revealed its stake had surpassed 40%.

Canal+ has offered to buy all the shares at R125 apiece, which is being considered by a newly formed independent board at MultiChoice.

The group said that it may acquire further MultiChoice Shares whilst the its takeover offer remains open and, if required under the Companies Act or the Takeover Regulations, will make further disclosures and announcements in that regard.

The group is unlikely to pass over the 50% mark through these smaller acquisitions as that would amount to a merger under the Competition Act, which would require prior approval from the Competition Tribunal.

MultiChoice previously explained that Canal+ would be forced to increase its offer price if it were to buy shares for more than R125 each.

Read: Canal+ ups stake in Multichoice

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