French broadcaster Groupe Canal+ has disclosed that it has bought even more shares in South Africa’s MultiChoice Group in recent days, taking its shareholding closer to the 50% mark.

In a regulatory filing with the JSE on Thursday, Canal+ disclosed that it bought millions more of the JSE-listed MultiChoice’s shares between 12 and 17 April. It acquired 3.65 million shares in that period, and has said it could buy more in the open market as it pursues its plan to acquire control of the parent company of DStv, Showmax and SuperSport.

According to the filing, Canal+ acquired the following shares in recent days:

Friday, 12 April 2024: About 1.82 million shares in on/off-market transactions for an average consideration of R117.50/share;
Monday, 15 April 2024: Some 810 000 shares in on/off-market transactions for an average consideration of R115.99/share;
Tuesday, 16 April 2024: About 1.01 million shares in on/off-market transactions for an average consideration of R115.95/share; and
Wednesday, 17 April 2024: Some 5 100 shares in on/off-market transactions for an average consideration of R116/share.

Following these share purchases, Canal+ holds 40.83% of the MultiChoice shares in issue.

“Save as may be prohibited under the Companies Act and the takeover regulations, Canal+ may acquire further MultiChoice shares after the date of this announcement while the offer [to MultiChoice shareholders] remains open…,” the French company said.

News of the additional share purchases comes 10 days after the two companies informed investors that they had agreed to work together on a mandatory offer that Canal+ must make to the MultiChoice shareholders. This was after Canal+ triggered a mandatory offer under South African rules by acquiring more than 35% of MultiChoice’s equity earlier this year.

The “cooperation agreement” will see the two broadcasting giants using “reasonable endeavours to cooperate in relation to the offer, including in relation to the fulfilment of the offer conditions and the publication of a combined offer circular”.

Canal+ is offering MultiChoice shareholders R125/share in cash in exchange for their shares.

If the deal hasn’t been consummated by 8 April 2025 – including securing the necessary regulatory approvals, which could still prove to be the biggest stumbling block to a transaction – then it could be terminated. This “long-stop date” can, however, be extended, with the concurrence of South Africa’s Takeover Regulation Panel, a financial regulator that is overseeing the mandatory offer.

Delisting

If the deal goes ahead, MultiChoice could be delisted from the JSE. If Canal+’s offer is accepted by shareholders with at least 90% of eligible MultiChoice shares, then the French firm has reserved the right to delist MultiChoice from the JSE. At the same time, though, Canal+ has said there is an opportunity, potentially, for South African investors to participate in its own proposed listing in Europe.