Close Menu
TechCentralTechCentral

    Subscribe to the newsletter

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    Facebook X (Twitter) YouTube LinkedIn
    WhatsApp Facebook X (Twitter) LinkedIn YouTube
    TechCentralTechCentral
    • News

      How South Africa’s banks became bakgat

      30 November 2023

      Putin’s daughter pursues digital plan in push to embrace Africa

      30 November 2023

      MTN slashes prepaid data prices: 200GB for R399

      30 November 2023

      Spar confident worst of ERP disaster now behind it

      30 November 2023

      Icasa takes aim at ‘illegal’ Starlink sales in South Africa

      29 November 2023
    • World

      ‘Go f… yourself’: Musk lashes out at fleeing advertisers

      30 November 2023

      Microsoft to take non-voting position on OpenAI board

      30 November 2023

      Hackers stole customer support data in Okta breach

      29 November 2023

      Orange withdraws from process to buy into Ethio Telecom

      28 November 2023

      Musk’s X hit by advertiser exodus

      27 November 2023
    • In-depth

      Africa has a feature phone problem

      23 November 2023

      Is your ISP monitoring your online activity?

      10 November 2023

      The real Big Brother Africa

      2 November 2023

      Compared: Starlink prices around the world – including Africa

      30 October 2023

      Africa is booming

      30 October 2023
    • TCS

      TCS+ | OneTrust’s Joseph Byrne: privacy risk management done right

      29 November 2023

      TCS+ | Ricoh – safe and secure role in today’s digital ecosystems

      27 November 2023

      TCS+ | NEC XON on going toe to toe with cybercriminals

      22 November 2023

      TCS | How ShotSpotter is fighting gun crime in Cape Town

      13 November 2023

      TCS+ | SOC-as-a-service: CYBER1 SOC and the future of cybersecurity

      13 November 2023
    • Opinion

      Could Cape Town become Africa’s Silicon Valley?

      14 November 2023

      Chris Kruger: What I learnt in my decades in IT leadership

      6 November 2023

      Ransomware attacks: how South African companies should respond

      6 November 2023

      Fibre providers urged to go ‘nano’ to cut costs

      31 October 2023

      Big banks, take note: PayShap should be free

      20 October 2023
    • Company Hubs
      • 4IRI
      • Africa Data Centres
      • Altron Document Solutions
      • Altron Systems Integration
      • Arctic Wolf
      • AvertITD
      • CallMiner
      • CoCre8
      • CYBER1 Solutions
      • Digicloud Africa
      • Digimune
      • E4
      • Entelect
      • ESET
      • Euphoria Telecom
      • iKhokha
      • Incredible Business
      • iONLINE
      • LSD Open
      • Maxtec
      • MiRO
      • NEC XON
      • Next DLP
      • Paratus
      • Ricoh
      • Skybox Security
      • SkyWire
      • Velocity Group
      • Videri Digital
    • Sections
      • AI and machine learning
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • E-commerce
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Metaverse and gaming
      • Motoring and transport
      • Open-source software
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Events
    • Advertise
    TechCentralTechCentral
    Home » Sections » Broadcasting and Media » Canal+ hikes stake in DStv parent – again

    Canal+ hikes stake in DStv parent – again

    Canal+ has increased its stake in MultiChoice to 31.7%, taking it closer to a potential mandatory offer to other shareholders.
    By Duncan McLeod2 July 2023
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    France’s Groupe Canal+ has increased its stake in JSE-listed MultiChoice Group – the parent of DStv, SuperSport and Showmax – to 31.7%.

    This was disclosed in MultiChoice’s annual report, published on Friday. Canal+ is owned by French media giant Vivendi.

    The last time MultiChoice declared details about the stake, on 10 February, Canal+ owned 30.3% of the group’s total ordinary shares in issue.

    The jury is out on the legalities on whether they can jump 35%, and what it means and what it doesn’t mean

    Speaking to TechCentral last month, MultiChoice Group CEO Calvo Mawela said the broadcaster “continues to have engagements on a regular basis” with Canal+ as the two business “look at areas of collaboration”.

    “We will continue to do more. We are working together on content. They still believe there is value in this company,” Mawela said.

    Canal+ has steadily been buying shares in MultiChoice since 2020. Last September, it ramped up its buying, increasing its stake from 20.1% – disclosed last July – to 26.3%. It increased that to 30.3% by February this year.

    The moves once again raise questions about Canal+’s ultimate intentions, specifically whether it plans to make an offer to MultiChoice’s minorities – a move that could be difficult to execute given South Africa’s restrictions around the foreign ownership of broadcasters.

    Financial investment

    Canal+ previously told MultiChoice that it views the stake as a financial investment. The two companies have worked together for years, sharing content between their respective markets.

    Now at 31.7%, Canal+ is inching closer to the 35% threshold at which it might have to trigger a mandatory offer to other shareholders. It’s not, however, entirely clear whether a mandatory offer would be triggered as this is open to legal interpretation, said Mawela.

    “The jury is out on the legalities on whether they can jump 35%, and what it means and what it doesn’t mean. It will depend on the legal position taken by the authorities.”

    According to corporate law firm Baker McKenzie, the threshold in South Africa for triggering a mandatory offer to also acquire all the securities of the remaining shareholders is the acquisition of 35% or more of the voting securities of a company or of any class of such securities.

    Read: MultiChoice posts rise in profit but withholds dividend

    “For purposes of determining such holding, the holdings of all persons acting in concert are aggregated. A bidder is exempt from the requirement to make a mandatory offer if 1) the bidder would acquire voting securities in the target by means of an issue of securities (and not a direct sale from a offeree shareholder); 2) the holders of a majority of the independent shares of the target (shareholders other than the bidder and its concert parties, have agreed to waive the mandatory offer; and 3) the Takeover Regulation Panel exempts the bidder from making a mandatory offer.”

    Canal+’s 31.7% stake in MultiChoice also appears to be higher than what’s permitted under South African broadcasting legislation, which limits foreign ownership of South African broadcasters to 20%. However, MultiChoice said earlier this year that it will remain compliant with the rules around foreign ownership.

    It explained that a provision in its memorandum of incorporation permits it to reduce the voting rights of shares so that the aggregate voting power of shares held by foreigners is kept below 20% of the total voting power in the company.

    Read: How load shedding is hurting DStv

    “This is to ensure compliance with certain statutory requirements applicable to South Africa,” it said. For this purpose, MultiChoice will assume all shares deposited under an American Depository Receipts programme are held by foreigners, regardless of their actual nationality. Also, all shareholders with an address outside South Africa will deemed to be foreigners unless they can prove otherwise, it said.  – © 2023 NewsCentral Media

    Get TechCentral’s daily newsletter

    Calvo Mawela Canal+ DStv Groupe Canal+ MultiChoice ShowMax SuperSport Vivendi
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleEthiopia launches tender for new telecoms licence
    Next Article Wisps: Say bye-bye to network interference with RF Elements

    Related Posts

    How South Africa’s banks became bakgat

    30 November 2023

    DCA, Huawei and WBBA host Africa Fibre Forum 2023

    30 November 2023

    Accelerate innovation with platform engineering

    30 November 2023
    Promoted

    DCA, Huawei and WBBA host Africa Fibre Forum 2023

    30 November 2023

    Accelerate innovation with platform engineering

    30 November 2023

    NEC is Cisco’s infrastructure partner of the year for Emea

    29 November 2023
    Opinion

    Could Cape Town become Africa’s Silicon Valley?

    14 November 2023

    Chris Kruger: What I learnt in my decades in IT leadership

    6 November 2023

    Ransomware attacks: how South African companies should respond

    6 November 2023

    Subscribe to Updates

    Get the best South African technology news and analysis delivered to your e-mail inbox every morning.

    © 2009 - 2023 NewsCentral Media

    Type above and press Enter to search. Press Esc to cancel.