DStv owner Multichoice Group and French media giant Canal+ have jointly announced an extension to the ‘long stop date’ tied to their R55 billion merger deal.
The long stop date—initially set at 8 April 2025—is when all the conditions for implementing Canal+’s takeover offer must be fulfilled or waived.
However, the groups said the necessary merger control clearance from South African competition authorities and the relevant regulatory processes will not be complete by this date.
As these processes are ongoing, the groups have agreed to extend the date to 8 October 2025.
“MultiChoice and Canal+ are of the view that this provides ample time for the fulfilment of the conditions,” the company said.
“Save for the extension of the long stop date, the terms of the offer remain unchanged,” it added.
Maxime Saada, CEO of Canal+ said the extension reflects the group’s commitment to the deal.
“The timing of this transaction is critical, and we will continue working tirelessly to ensure the finalisation of the transaction within this timeframe to ensure it retains its intended value and impact for all stakeholders,” he said.
Canal+ has offered to buy the remaining shares in Multichoice that it does not already own for R125 per share, valuing the group at R55 billion. The group currently has a 45% shareholding of Multichoice.
To get the deal done, the transaction must navigate a minefield of government regulations, including risks of violating South Africa’s Electronic Communications Act (ECA) and competition regulators.
Multichoice and Canal+ previously laid out a complex post-merger structure that attempts to circumvent these pitfalls, including the conditions on licences that restrict foreign ownership to 20% of voting rights.
To get around this, the post-merger group intends to split off the broadcast licence and subscriber base to a new company called “LicenceCo” which will be majority owned by BEE shareholders.
The Multichoice/Canal+ group would own 49% of this company, with 20% voting rights.
While the groups have a solid plan to get past the ECA restrictions, the deal still has to pass the Competition Commission/Tribunal, the Financial Surveillance Department, the JSE, the Takeover Regulation Panel, and the Independent Communications Authority of South Africa (Icasa).
Each step poses its own challenges and potential pitfalls, but Multichoice has assured that customers and subscribers will not be disrupted by the machinations happening in the background.
The article was originally published by Business Tech
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