Canal+, the pay-TV unit of French media holding company Vivendi, has increased its stake in MultiChoice to 18.44%.
MultiChoice CEO Calvo Mawela revealed the increased shareholding by Canal+ during the company’s annual results presentation.
Mawela said they continue to have monthly interactions with Vivendi and that the French media likes MultiChoice, its management, and its prospects.
“Vivendi thinks MultiChoice is a well-run company that will continue to grow,” Mawela said. “They see MultiChoice as a good financial investment.”
The increased shareholding sparked speculation that Vivendi, through Canal+, could be looking to take over MultiChoice.
Vivendi previously tried to acquire MultiChoice Africa, but the multi-million-dollar offer was rejected.
MultiChoice said it kept an open mind about its relationship with the company.
Commenting on Vivendi increasing its stake in MultiChoice from 15% to 18.44%, CFO Tim Jacobs said they have been buying shares off the open market.
“They are not at a notifiable stage. That will happen when they get to 20%,” Jacobs said. “They have been active in the market, picking up a few extra percent since the last announcement.”
Richard Cheesman, a senior investment analyst at Protea Capital Management, previously said they see the opportunity, means, and motivation for Canal+ to buy a larger stake in MultiChoice.
“There is little geographical overlap between MultiChoice and Canal+ in Africa, and there would be many synergies from a merger such as content costs, satellite leases, and perhaps expediting the use of the MultiChoice tax losses,” he said.
“MultiChoice and Canal+ have monthly feedback meetings and have collaborated on some content. We view this as informal due diligence being done.”
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