Canal+ Acquires More Stake in MultiChoice

France’s Canal+ Group has upped its stake in MultiChoice, Africa’s largest pay-TV and the parent company of satellite TV services DStv and GOtv, the company said in a shareholder statement on Thursday, taking it from 12% to more than 15%. Vivendi’s VIV.PA Canal+ raised its stake significantly last year, sparking speculation about a possible takeover. MultiChoice said it was keeping an open mind about its relationship with the company.

It said in its statement on Thursday that it remains committed to acting in the best interests of shareholders and creating long-term value, but its policy was not to comment on individual shareholders or its relationship with them.

Groupe Canal+ SA is a French film and TV studio and distributor which owns the Canal+ French TV channels. These channels span movies, sports, series, and news and have produced popular films such as The Straight Story, Mulholland Dr, and Inland Empire.

Groupe Canal+ has been expanding into Africa, including the acquisition of Nigerian production company ROK Studios. Vivendi previously tried to acquire MultiChoice Africa, but the multi-million-dollar offer was rejected.

The company is now stocking up on MultiChoice shares, which industry players speculate may indicate that Canal+ is planning to acquire MultiChoice. MultiChoice is Africa’s leading entertainment company and operates four platforms – DStv, GOtv, Showmax, and DStv Now.

It has approximately 14 million subscribers across 50 countries, with a particularly dominant position in South Africa. MultiChoice serves Canal+ SA’s African ambitions perfectly and explains why it is investing in the company. MultiChoice said that it had filed the required notice with the Takeover Regulation Panel in South Africa.

The Takeover Regulation Panel, which reports to the Minister of Trade and Industry, oversees the country’s takeover regulations. Its mandate is to regulate mergers and acquisitions and protect minority shareholders by ensuring that such shareholders will have access to important information during transactions.