MultiChoice and its French would-be suitor, Canal+, have extended the date to complete the transaction to October, from April, citing delays in getting approvals from regulators and competition authorities.
Given the complex nature of deal-making processes, companies often have to push back completion dates. For instance, the date for Vodacom and Remgro’s proposed fibre merger, recently blocked by competition authorities, has pushed out a number of times.
On Tuesday, the broadcasters said the process of obtaining merger control clearance from the Competition Commission, Independent Communications Authority of SA (Icasa) and other regulatory processes “are ongoing”.
It is expected that these processes will not be complete by the initial 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”.
After consulting with the takeover regulation panel, the companies have decided to move the long stop date to October 8.
“MultiChoice and Canal+ are of the view that this provides ample time for the fulfilment of the conditions. Save for the extension of the long stop date, the terms of the offer remain unchanged,” the companies said in a joint note to investors.
In April last year, Canal+ and Africa’s largest pay TV operator entered into a co-operation agreement regarding a proposed mandatory offer.
Canal+ had been aggressively buying MultiChoice shares for almost four years after it started building its stake with an initial purchase of 6.5% in October 2020. At the beginning of February 2024, the Paris-based company made an offer to buy the rest of the company at R105 a share, or just more than R31bn, in what would have been the biggest M&A deal in SA in 2024.
The DStv owner snubbed the offer even though it was at the top end of the target price range that analysts and brokers had for the stock. Canal+ raised its offer to R125 a share on March 5.
A day later, Canal+’s stake had grown to 35.01%, triggering a mandatory offer according to rules set by the takeover regulation panel.
MultiChoice group CEO Calvo Mawela said: “The teams continue to make great progress on this transaction. We remain committed to concluding a successful transaction that will create positive value for our customers, our shareholders and all other stakeholders in our ecosystem.”
MultiChoice’s share price was down 3.06% to R102.04 in midday trade on Tuesday.
“Our decision to extend the long stop date reflects our recognition of the hard work and positive progress achieved by all the parties and stakeholders in working toward securing the necessary clearances for this transformative transaction,” said Canal+ CEO Maxime Saada.
“The timing of this transaction is critical and we will continue working tirelessly to ensure finalisation of the transaction within this time frame to ensure it retains its intended value and impact for all stakeholders.”
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