Part of French billionaire Vincent Bollore’s media empire has nearly doubled its stake in South African pay-TV company MultiChoice Group Ltd. following a collaboration between the two companies on local productions.
(Bloomberg) — Part of French billionaire Vincent Bollore’s media empire has nearly doubled its stake in South African pay-TV company MultiChoice Group Ltd. following a collaboration between the two companies on local productions.
Vivendi SE-owned broadcaster Canal+ has gradually acquired tranches of shares and now owns 26% of the Johannesburg-based firm, compared with 15% a year ago, according to stock market filings, with the latest reported on Wednesday.
Canal+ initially bought a 6.5% holding in MultiChoice in October 2020, sparking market speculation of a potential buyout. The French firm has called the share buying a long-term investment and the two companies have collaborated on local productions such as “Blood Psalms,” a drama based on pre-colonial South African mythology. That’s helped to differentiate MultiChoice from larger rivals like Netflix Inc. with local content.
Read More: MultiChoice, Vivendi to Team Up on New Africa TV Productions
A spokeswoman for Canal+ declined to comment on the stakebuilding.
Over the last few years, Bollore has accelerated media purchases, seeking to create a streaming and pay-TV empire with a goal to rank among the world’s top five paid-content providers by the end of this decade. The group is increasing its focus on Africa, with MultiChoice in the English-speaking part of the continent and Canal+ channels in the French-speaking area. It recently launched a daily TV soap as a sign of this effort.
Read More: Billionaire ‘French Murdoch’ Builds Own Right-Wing Media Empire
The purchases of MultiChoice shares look “opportunistic and value-driven rather than presaging a takeover attempt,” John Davies, a senior analyst at Bloomberg Intelligence, said in a note.
A full deal for the holder of lucrative live-sport rights would be complicated by South African rules over foreign ownership of broadcasters and regulators would be unlikely to approve a takeover under the current setup, according to Davies. A deeper partnership could bring “modest financial benefits to MultiChoice,” he said.
MultiChoice shares gained 0.7% as of 2:14 p.m. in Johannesburg, and have gained 8.5% over the past 12 months.
If Canal+ were to buy 35% or more of MultiChoice’s shares, it would trigger a mandatory offer to shareholders.
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