French media group Vivendi proposes to split into four entities (updated)
30/01/2024 20:13
(Adds details on plans and background on Vivendi from paragraph
4)
PARIS, Jan 30 (Reuters) - French media company Vivendi
VIV.PA said on Tuesday it was studying splitting up into four
entities, giving an update on a plan first flagged at the end of
last year to carve itself up in order to boost the growth and
development of each resulting, separately listed company.
"Since ... 2021, Vivendi has endured a significantly high
conglomerate discount, substantially reducing its valuation and
thereby limiting its ability to carry out external growth
transactions for its subsidiaries," the company said in a
statement.
Vivendi, in which France's billionaire Bollore family holds
the biggest individual stake, said the four businesses that
could be spun off in this way included its TV unit Canal Plus
and its advertising arm Havas.
The other two would be a company grouping the assets in
publishing and distribution, including Vivendi's majority stake
in French company Lagardere LAGA.PA and wholly owned Prisma
Media, and an investment company.
"This split project would provide each of the four listed
companies with the human resources and the financial agility
necessary for their development," Vivendi said.
"This project will have to prove its added value for all
stakeholders and include an analysis of the tax consequences of
the various contemplated operations."
Shares in Vivendi closed up 0.15% on Tuesday, giving it a
market capitalisation of roughly 10.6 billion euros ($11.49
billion).
Since Vivendi said, on Dec. 13 2023, it was considering
splitting its activities, its share price has gone up 15% versus
a rise of 6% of the STOXX Europe 600 media index .SXMP over
the period.
"A new update on the study of the split project will be
presented to the supervisory board meeting convened on March 7,
2024, the day of the publication of the group's 2023 annual
results," Vivendi said in a statement.
Vivendi said several other important steps should be taken,
including the consultation of the employee representative bodies
of the concerned entities, the necessary regulatory approvals,
the approvals required from bondholders and the group's other
creditors as well as the consent of shareholders.
($1 = 0.9223 euros)
(Reporting by Benoit Van Overstraeten; Editing by Chris Reese
and Emelia Sithole-Matarise)
((benoit.vanoverstraeten@thomsonreuters.com; +33149495339;))