MultiChoice and its suitor Canal+ have approached South African regulators over a proposed R30 billion deal in which the French-based media giant wants to take over the local video entertainment group.
Over the years, Canal+ has been buying MultiChoice’s shares on the open market. As the company increased its stake, it made the move to acquire all the shares in the pay-TV operator.
MultiChoice’s total number of issued shares is 442 512 678; therefore, at 45.2%, Canal+ holds around 200 015 730 shares in MultiChoice as at 16 May 2024.
This means the French broadcaster has to fork out over R30 billion to purchase the shares it does not own in MultiChoice on the open market.
ITWeb understands that should the Canal+ shareholding in MultiChoice exceed 50%, the deal may be subject to Competition Commission scrutiny.
In a joint statement yesterday, MultiChoice and Canal+ say they made a joint merger control filing pertaining to the offer to the Competition Commission as required by the Competition Act.
They are also engaging with the Independent Communications Authority of South Africa and other regulatory authorities over the deal.
“In terms of the Competition Act, the transaction is classified as a ‘large merger’, which requires approval by the Competition Tribunal,” the companies tell shareholders.
“Accordingly, the Competition Commission will consider the filing and refer its recommendations to the Competition Tribunal. Given the regulatory processes under way, Canal+ and MultiChoice will provide MultiChoice shareholders with further updates and details in due course.”
Share