French broadcasting giant Group Canal+ has taken a 6.5% stake in MultiChoice, Africa’s largest pay-TV operator, whose share price was set for its best day in almost four months on Monday.

The stake was worth R3.2bn on Monday morning, and MultiChoice’s share price was up 7.89% to R110.57 in early trade, on track for its best day since June 10.

Canal+ is owned by Vivendi, which said in a statement the acquisition was a long-term financial investment, and demonstrated its confidence in the prospects of both MultiChoice and the African continent.

The Canal+ group has more than 20.4-million subscribers worldwide, including 8.6-million in mainland France, the company said. MultiChoice has about 19.5-million subscribers in 50 countries.

MultiChoice said its policy was not to comment on individual shareholders.

“As a publicly held company, MultiChoice regularly engages with its strategic partners and maintains an open dialogue with the investment community,” the group said.

MultiChoice’s share has fallen about 5% so far in 2020, but was on track for its ninth-consecutive session of gains on Monday, its longest streak since listing in February 2019.

Update: October 5 2020
This article has been updated with additional information


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