4th Mar 2025 13:35
(Alliance News) - MultiChoice Group Ltd and Canal+ SA on Tuesday said they have extended the deadline to clear conditions in a deal that will see the French group take over the South African entertainment company.
In a joint statement, the two companies said the process to obtain merger control clearance from South African competition authorities and other regulatory approvals continues.
These will not be complete by the long stop date of April 8, which is the date on which all the conditions for the implementation of the offer must be fulfilled or waived.
The new date to clear all conditions is October 8.
MultiChoice and Canal+ said this provides ample time to fulfil the conditions.
Canal+ early in June last year improved its offer for MultiChoice to ZAR125 per share, a 67% premium to MultiChoice's closing price of ZAR75 before Canal+ first approached MultiChoice investors on February 1 last year. The French group formally made the offer early in April.
Canal+'s mandatory offer to MultiChoice shareholders opened early in June last year and closes on April 25 this year.
Early last month, MultiChoice and Canal+ said they had concluded their discussions over the structure of MultiChoice after the takeover.
This proposed structure ensures that the MultiChoice acquisition complies with foreign control regulations and maintain MultiChoice's broad-based black economic empowerment credentials, the two said.
In terms of the proposed structure, MultiChoice will be restructured so that the current holder of the broadcasting licence in South Africa and the entity which contracts with South African subscribers, MultiChoice (Pty) Ltd or Licence Co, will be carved out of the MultiChoice group and will become an independent entity.
The remainder of MultiChoice's video entertainment assets will remain part of the MultiChoice Group.
Licence Co will continue to hold the subscription broadcasting licence in South Africa,and it will continue to contract with MultiChoice's South African subscribers.
MultiChoice shares were down 5.2% to ZAR99.80 in Johannesburg on Tuesday afternoon.
By Artwell Dlamini, Alliance News reporter
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