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Tim Jacobs, Chief Financial Officer, MultiChoice Group
Multiple choice group CFO Tim Jacobs has said in an interview with TechCentral that the pay TV broadcaster will “keep an open mind” to any approach from Canal + de France.
Canal +, owned by French media conglomerate Vivendi, bought 12% of the shares of MultiChoice Group listed on JSE this year, sparking speculation about the company’s intentions and causing a sharp rise in the share price. from the South African firm to reach record levels above R140 / share.
MultiChoice revealed for the first time on October 5 that Canal + had acquired 6.5% of its share capital. Then, on October 29, he said that the French company had almost doubled that stake to 12%.
“Whether it’s Canal + or someone else, we have a responsibility as directors of the company to do what is in the best interest of shareholders,” Jacobs told TechCentral in an interview following the release of MultiChoice’s interim financial results on Thursday.
“Whatever opportunity comes our way, we will try to keep an open mind. We will certainly look at it and say, ‘Is this best for shareholders or not?’ If so, we would have to accept it and make the best possible deal for shareholders, ”said Jacobs.
He said that Canal + ‘s stated intention is to treat MultiChoice’s participation as a financial investment. Canal + has performed well in Francophone Africa and is optimistic about the prospects for the pay TV industry on the continent. He said the two companies have worked together for some time, sharing content between their markets. “We have an ongoing relationship with them in various territories.”
Foreign ownership
If Canal + took the relationship further and played with MultiChoice, it would have to overcome South African restrictions on foreign ownership of stations.
The Electronic Communications Law establishes that a foreigner “may not, directly or indirectly, exercise control over a commercial broadcasting licensee or have a financial interest or in shares with voting rights or paid-up capital in a commercial broadcasting licensee greater than 20% “. Furthermore, no more than 20% of the directors of a commercial broadcasting licensee may be foreigners.
Although a draft white paper on audiovisual services, published last month, proposed relaxing this restriction from 20% to 49%, it will likely take at least two years before this is translated into legislation, Jacobs said.
Although the foreign ownership limitation “is potentially not insurmountable,” “it is certainly not easy to overcome,” he said. “It would require deep and creative thinking (to make a deal).”
Meanwhile, MultiChoice is closely monitoring Canal + ‘s participation in the group. “They have made (the purchase) in two big increases. They did the first construction from February to June or July. Then they were off the market for a while. They then made another quick raise to double that to 12%. That’s where they are sitting now. We are watching him closely. “ © 2020 NewsCentral Media
