TechCentralTechCentral
    Facebook Twitter YouTube LinkedIn
    Facebook Twitter LinkedIn YouTube
    TechCentralTechCentral
    NEWSLETTER
    • News

      Consortium makes unsolicited bid for state’s 40% stake in Telkom

      12 August 2022

      Actually, solar users should pay more to access the grid – here’s why

      12 August 2022

      Fixing SA’s power crisis is not complex: it simply takes the will to do better

      12 August 2022

      Telkom says MTN talks remain on track

      12 August 2022

      Analysis | Rain muddies the waters with approach to Telkom

      11 August 2022
    • World

      Tencent woes mount, even after $560-billion selloff

      12 August 2022

      Huawei just booked its first sales rise since US blacklisting

      12 August 2022

      Apple remains upbeat about iPhone sales even as Android world suffers

      12 August 2022

      Ether at two-month high as upgrade to blockchain passes major test

      12 August 2022

      Gaming industry’s fortunes fade as pandemic ends

      11 August 2022
    • In-depth

      African unicorn Flutterwave battles fires on multiple fronts

      11 August 2022

      The length of Earth’s days has been increasing – and no one knows why

      7 August 2022

      As Facebook fades, the Mad Men of advertising stage a comeback

      2 August 2022

      Crypto breaks the rules. That’s the point

      27 July 2022

      E-mail scams are getting chillingly personal

      17 July 2022
    • Podcasts

      Qush on infosec: why prevention is always better than cure

      11 August 2022

      e4’s Adri Führi on encouraging more women into tech careers

      10 August 2022

      How South Africa can woo more women into tech

      4 August 2022

      Book and check-in via WhatsApp? FlySafair is on it

      28 July 2022

      Interview: Why Dell’s next-gen PowerEdge servers change the game

      28 July 2022
    • Opinion

      No reason South Africa should have a shortage of electricity: Ramaphosa

      11 July 2022

      Ntshavheni’s bias against the private sector

      8 July 2022

      South Africa can no longer rely on Eskom alone

      4 July 2022

      Has South Africa’s advertising industry lost its way?

      21 June 2022

      Rob Lith: What Icasa’s spectrum auction means for SA companies

      13 June 2022
    • Company Hubs
      • 1-grid
      • Altron Document Solutions
      • Amplitude
      • Atvance Intellect
      • Axiz
      • BOATech
      • CallMiner
      • Digital Generation
      • E4
      • ESET
      • Euphoria Telecom
      • IBM
      • Kyocera Document Solutions
      • Microsoft
      • Nutanix
      • One Trust
      • Pinnacle
      • Skybox Security
      • SkyWire
      • Tarsus on Demand
      • Videri Digital
      • Zendesk
    • Sections
      • Banking
      • Broadcasting and Media
      • Cloud computing
      • Consumer electronics
      • Cryptocurrencies
      • Education and skills
      • Energy
      • Fintech
      • Information security
      • Internet and connectivity
      • Internet of Things
      • Investment
      • IT services
      • Motoring and transport
      • Public sector
      • Science
      • Social media
      • Talent and leadership
      • Telecoms
    • Advertise
    TechCentralTechCentral
    Home»Sections»Broadcasting and Media»Is MultiChoice Group in play?

    Is MultiChoice Group in play?

    Broadcasting and Media By Duncan McLeod5 October 2020
    Facebook Twitter LinkedIn WhatsApp Telegram Email

    MultiChoice Group, the owner of DStv and Showmax, surprised investors on Monday when it revealed that France’s Groupe Canal+ has acquired 6.5% of its equity, sending its shares leaping higher.

    But what could be behind the decision by Canal+, which is owned by French media giant Vivendi, to take a minority position in the pan-African pay-television operator, whose other assets include SuperSport, GOtv and Irdeto.

    MultiChoice’s announcement — which it was required to make under the Companies Act and JSE rules — certainly got tongues wagging. Why is Canal+ accumulating a stake in MultiChoice? Could a hostile takeover be on the cards? (Those are as rare as hen’s teeth in South Africa, and difficult to do, so probably not.) And is a deal even possible given South Africa’s (silly and outdated) rules on the foreign ownership of broadcasters?

    MultiChoice’s announcement – which it was required to make under the Companies Act and JSE rules – certainly got tongues wagging

    It’s entirely possible that Canal+ and parent Vivendi are simply betting that MultiChoice’s prospects are good and that an investment will yield a decent return in a sector they understand.

    But it could also signal a desire by the French media group to consolidate its position in Africa, where it is already a leader in many Francophone markets (MultiChoice is the market leader in Anglophone Africa). A combination of the two companies, or even closer cooperation, could, in theory, give them a stronger negotiating position with content suppliers. It could also, again in theory, help them better fend off competitors such as China’s StarTimes, and a raft of streaming providers, including Netflix, that have designs on taking market share from the incumbent satellite players.

    Carefully worded

    MultiChoice didn’t say much in its announcement on Monday, though it did word the statement rather carefully, I thought. It said it “regularly engages with its strategic partners” – suggesting, to me, that there have been discussions with Canal+ of some description. It added that its policy is “not to comment on its individual shareholders, nor on its interactions with them”. In other words, it’s not going to tell investors what it’s been talking to Canal+ about.

    “The company remains committed to acting in the best interests of all shareholders and to create sustainable long-term shareholder value,” it added. This might mean that whatever it’s discussed with Canal+ doesn’t enjoy management support – but perhaps I’m reading too much into that part of the statement? (Perhaps I’m reading too much into all of this, but I suspect not.)

    Vivendi spokesmen hadn’t responded to an e-mail from TechCentral by Monday afternoon seeking comment on the Canal+ investment. A MultiChoice spokesman said that Canal+ first acquired a stake in the company in April 2020, but that it was only required to notify shareholders (and the Takeover Regulation Panel) once it breached the 5% shareholding mark.

    Assuming the mix of MultiChoice’s largest shareholders hasn’t changed since its year-end on 31 March, Canal+ is now its fourth-largest shareholder behind the Public Investment Corp (13.4%), Allan Gray (10.1%) and Prudential Portfolio Managers (9%). Will it keep building its stake? It’s entirely possible.

    But if it wants to do so, it might find itself running up against the Electronic Communications Act at some point. The ECA states that “a foreigner may not, whether directly or indirectly, exercise control over a commercial broadcasting licensee or have a financial interest or an interest either in voting shares or paid-up capital in a commercial broadcasting licensee exceeding 20%”.

    Monday’s jolt to its share price might suggest investors are expecting more than a passive shareholding

    That probably applies to MultiChoice South Africa (the entity licensed by communications regulator Icasa), rather than to MultiChoice Group, which is the entity listed on the JSE and the one Canal+ has invested in. Indeed, the group’s annual report states that foreign institutions and shareholders already own 37% of its equity – well beyond the 20% foreign shareholding rule.

    It’s entirely plausible that if a deal were to happen – and, I must emphasise again that this is speculation (we don’t know what Canal+’s intentions are) – that MultiChoice South Africa’s shareholding requirements could be catered for separately to the rest of the group’s pan-African operations.

    For now, though, investors will be keeping a keen eye on further announcements from MultiChoice that could provide clues as to Canal+’s (and Vivendi’s) intentions. Monday’s jolt to its share price – it closed up almost 10% – might suggest investors are expecting more than a passive shareholding.  — © 2020 NewsCentral Media

    • Duncan McLeod is editor of TechCentral
    Canal+ DStv GOtv MultiChoice Netflix ShowMax StarTimes SuperSport top Vivendi
    Share. Facebook Twitter LinkedIn WhatsApp Telegram Email
    Previous ArticleFrance’s Canal+ buys stake in MultiChoice Group
    Next Article Interested in crypto trading? Attend the Binance Masterclass (DeFi Edition)

    Related Posts

    Tencent woes mount, even after $560-billion selloff

    12 August 2022

    Huawei just booked its first sales rise since US blacklisting

    12 August 2022

    Consortium makes unsolicited bid for state’s 40% stake in Telkom

    12 August 2022
    Add A Comment

    Comments are closed.

    Promoted

    Get your brand in front of TechCentral’s amazing audience

    12 August 2022

    Pricing Beyond CMYK: printers answer the FAQs

    11 August 2022

    How secure is your cloud?

    10 August 2022
    Opinion

    No reason South Africa should have a shortage of electricity: Ramaphosa

    11 July 2022

    Ntshavheni’s bias against the private sector

    8 July 2022

    South Africa can no longer rely on Eskom alone

    4 July 2022

    Subscribe to Updates

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

    © 2009 - 2022 NewsCentral Media

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