MultiChoice Group Limited, a prominent player in the South African media and entertainment industry, has recently undergone significant changes in its shareholding structure. In a move that has caught the attention of investors and market watchers alike, the company has disclosed that the clients of Allan Gray Proprietary Limited have acquired a substantial interest in MultiChoice shares.
The formal notification, in accordance with section 122(3)(b) of the Companies Act and related regulations, revealed that Allan Gray’s clients now collectively hold 10.0010% of the total issued ordinary shares of MultiChoice. This development underscores Allan Gray’s confidence in MultiChoice’s future prospects and its position within the South African market.
Allan Gray, a leading South African asset management company, has been steadily increasing its stake in MultiChoice. This move suggests a strong vote of confidence in the company’s performance and potential for growth in the media and entertainment sector.
This significant acquisition of MultiChoice shares is expected to impact the dynamics of the company’s shareholder structure and decision-making processes. It highlights Allan Gray’s strategic interest in MultiChoice’s operations and future endeavors within the industry.
MultiChoice Group Limited is taking steps to ensure its compliance with South African statutory requirements regarding foreign ownership of shares. South African law stipulates that the aggregate voting power of shares held by foreigners should not exceed 20% of the total voting power in the company. To meet this requirement, MultiChoice reserves the right to reduce the voting rights of certain shares.
Specifically, MultiChoice will presume that all shares deposited in the MultiChoice American Depositary Share (ADS) facility are owned by foreigners to South Africa. Additionally, shareholders with addresses outside of South Africa will be deemed foreigners unless they can provide proof to the contrary, as outlined in article 40.1.3 of the MultiChoice memorandum of incorporation.
This measure is aimed at ensuring MultiChoice remains in compliance with South African regulations and that the company retains its standing within the country’s media landscape.
With these developments in mind, shareholders are encouraged to familiarize themselves with the MultiChoice memorandum of incorporation, available on the company’s website, for a comprehensive understanding of these voting rights adjustments.
Should shareholders have any doubts about the implications of these changes or their own status, MultiChoice advises them to seek advice from their brokers, attorneys, or professional advisers. This proactive approach is designed to ensure that shareholders can make informed decisions in light of these developments.
MultiChoice’s announcement regarding Allan Gray’s increased stake in the company and the related adjustments to voting rights underscores the evolving landscape of the South African media and entertainment sector. As MultiChoice continues to adapt to regulatory changes and market dynamics, shareholders will play a crucial role in shaping the company’s future direction. For now, all eyes are on MultiChoice and its strategic moves in this ever-changing industry.
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