French media company Canal+ continues to increase its stake in MultiChoice by buying shares on the open market, raising speculation that a deal may be coming.
Canal+ is the pay-TV unit of French media holding company Vivendi which has interests in television, film, video games, book publishing, and video hosting.
MultiChoice first informed shareholders that Canal+ had acquired 6.5% of the company in October 2020. Since then, there have been regular updates on Canal+ increasing its stake.
In the latest update in July 2022, MultiChoice notified shareholders that Canal+ had increased its shareholding to 20.12%.
MultiChoice CEO Calvo Mawela said they continue to have monthly interactions with Vivendi and that the French media company likes MultiChoice, its management, and its prospects.
Mawela said their relationship with Canal+ is growing, and they are working together on many products, including content co-productions and sub-licensing content.
The increased shareholding sparked speculation that Vivendi, through Canal+, could be looking to strike a deal with MultiChoice.
The biggest prize for Vivendi is most likely MultiChoice Africa, which has around 12.8 million subscribers.
Vivendi tried to acquire MultiChoice Africa in 2017, but Naspers, the parent company of MultiChoice at the time, reportedly rejected the $1 billion offer.
MultiChoice would not comment on a new deal, only saying it kept an open mind about its relationship with Canal+ and Vivendi.
Source: My Broadband
