French-based media giant Canal+ has bumped up its shareholding in South African video entertainment group MultiChoice to 40.01%.
This, as the French company ups the ante in its bid to takeover the JSE-listed video entertainment firm.
Over the years Canal+, which had a 35% shareholding in MultiChoice, has been buying the firms shares on the open market.
As the company kept increasing its stake, it then made the bold move to acquire all the shares in the pay-TV operator.
Last week, the Canal+ and MultiChoice reached a cooperation agreement regarding the offer to buy out the video entertainment group.
In a statement this morning, MultiChoice says it has received formal notification that Canal+ has acquired an additional interest in the ordinary shares of the company, such that the total interest in the ordinary shares of the company held by Canal+ now amounts to 40.01% of the company’s total ordinary shares in issue.
MultiChoice notes that it has informed the Takeover Regulation Panel, as well as the Companies and Intellectual Property Commission about the transaction.
The new development comes after Canal+ recently proposed a mandatory offer to acquire all the issued shares of MultiChoice Group not already owned by the group at a purchase price of R125 per share, payable in cash.
MultiChoice recently announced that outgoing chairman Imtiaz Patel would remain in his role until the completion of the ongoing Canal+ transaction.
It was previously announced that Patel would step down as the video entertainment group’s chairman with effect from 1 April.
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