Canal+ Extends Deadline for MultiChoice Takeover

Canal+ Extends Deadline for MultiChoice Acquisition by Six Months

By Leo Marchandon and Gianluca Lo Nostro

(Reuters) -Canal+ has extended the deadline for its takeover of South Africa's pay TV broadcaster MultiChoice by six months to give regulators more time to clear the deal, the French group said on Tuesday as it forecast a drop in revenue this year.

If completed, the acquisition would be transformative for Canal+ as part of its expansion strategy in Africa, particularly in English-speaking regions, following its split from Vivendi in December.

However, the broadcaster's shares have declined by 40% since its mid-December market debut in London.

The process to get clearances for the merger will not be completed by the initial deadline of April 8, 2025, the company said, prompting the decision to extend the process to October 8.

"We are confident in our ability to close the deal by then as soon as it is confirmed by the authorities. To put this extension in context, it is quite common in South Africa for the authorities' green light to fall within such a time horizon", the company said.

"The timing of this transaction is critical and we will continue working tirelessly to ensure finalisation within this timeframe," Canal+'s CEO Maxime Saada said in a joint statement on the extension issued by Canal+ and MultiChoice.

CAUTIOUS OUTLOOK BUT EARNINGS UPBEAT

Canal+ expects organic growth in revenue this year but this will be outweighed by a negative impact from the recent end of broadcasting of its free to air channel C8 in France and the termination of third-party contracts, including one with Disney.

It sees moderate growth in the following years, not including any impact from the MultiChoice acquisition.

On Tuesday, the Paris-based broadcaster reported a 2.3% rise in revenue in 2024 to 6.4 billion euros ($6.7 billion) and 4.2% growth in adjusted earnings before interest and taxes (EBIT) to 503 million euros.

Canal+'s shares edged up 0.6% by 0832 GMT.

Founded in 1984 as a subscription-TV channel in France, Canal+ is transitioning into a global content platform, aiming to quintuple its subscribers to 100 million.

The company attributes 80% of its revenue to subscription fees, with cinema - via its Studiocanal unit behind the Paddington film series - driving subscriber engagement.

Canal+ racked up 26.93 million total subscribers in 2024, of which 17.24 million in Europe and 9.69 million in Africa and Asia.

The company is prioritising direct-to-consumer subscribers, who account for 19.9 million of its total subscriber base, compared to 7 million from wholesale channels.

($1 = 0.9537 euros)

(Reporting by Leo Marchandon and Gianluca Lo Nostro in Gdansk, Florence Loèeve in Paris and Paul Sandle in London; Editing by Varun H K, Emelia Sithole-Matarise and Susan Fenton)