France’s Canal+ Group has again upped its stake in South Africa’s MultiChoice pay-TV operation.
Canal+ now owns 31.7 per cent of MultiChoice which is itself listed on the Johannesburg Stock Exchange. MultiChoice operates the DStv, SuperSport and Showmax pay-TV options for African viewers.
Canal+ is itself controlled by Vivendi.
The new stake is up from 30.3 per cent revealed on February 10th.
MultiChoice CEO Calvo Mawela is on record as saying that the two businesses have regular conversations as to areas of collaboration.
The history of Canal+ and its involvement in MultiChoice is one of steady involvement since 2020. In September 2022, it raised its holdings from the previous 20.1 per cent to 26.3 per cent, and then again increased its stake to 30.3 per cent in February 2023.
However, there are local rules in South Africa which limit foreign ownership of local broadcasters. The maximum shareholding threshold for Canal+ is 35 per cent and which could then require it makes a mandatory offer to buy out other shareholders.
Another potential problem is that Vivendi/Canal+ have already breached a 20 per cent limit on foreign ownership of a local broadcaster.
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