Canal+ has again increased its stake in MultiChoice Group.
The Vivendi unit has taken its holding to 31.7% from the 30.3% it had declared in January.
Canal has been building its holding in Multichoice, which operates DStv, SuperSport and Showmax, since 2020. Previously, the French pay-TV giant has said it views the holding as a “financial investment”, but there are now questions as to what might happen should Canal get close to the 35% that would normally trigger a mandatory takeover bid.
This is particularly a live issue given South Africa’s rules on foreign ownership, at present this is set at 20%, though MultiChoice says it will remain compliant with the rules.
It can do so through a clause in its memorandum of incorporation, which allows it to reduce the voting rights of foreign investors.