MultiChoice Group Ltd and Canal+ SA on Tuesday said they are on track to clear all conditions in a deal that will see the French group take over the South African entertainment company.

Back on March 4, the two companies said they had extended the long stop date to October 8 from April 8 to fulfill all the conditions facing the proposed offer.

The proposed takeover is subject to clearance from South African competition authorities and other regulatory approvals continues.

Canal+ early in June last year improved its offer for MultiChoice to R 125 per share, a 67% premium to MultiChoice’s closing price of R 75 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.

In February, 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 companies said then.

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 up 0.7% to R 104.44 in Johannesburg on Tuesday afternoon. Canal+ shares were up 0.7% at 156.35 pence in London.

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