- French media conglomerate Vivendi has announced plans to list its pay-TV business Canal+ in London as part of a broader break-up strategy.
- Vivendi’s break-up plan represents a dramatic departure from its previous strategy of developing a cohesive media empire across Europe.
OUR TAKE
It seems Vivendi is bidding farewell to its dream of becoming a European media giant by announcing plans to list Canal+ in London. They had previously been focused on building an integrated media powerhouse across Europe. Now, Canal+ and Havas are set to spin off and list in London and Amsterdam respectively. While the Bollore family will retain significant control, Vivendi itself may end up with a net debt ranging from €1.5 billion to €2 billion. Nevertheless, Canal+ and Havas will emerge virtually debt-free, which could potentially pave the way for them to excel on their own. We’ve seen successful spin-offs in the past, so let’s wait and see how this media “divorce” unfolds.
–Miurio huang, BTW reporter
What happened
French media conglomerate Vivendi has announced plans to list its pay-TV business Canal+ in London as part of a broader break-up strategy. This move marks a significant shift from its longstanding strategy to build an integrated, European-based media powerhouse, a vision promoted by top shareholder Vincent Bollore. Vivendi also plans to list its Havas advertising business in Amsterdam, transforming the company into a listed investment holding entity.
Vivendi’s new strategy, unveiled on Monday, includes distributing shares of Canal+ and Havas to its shareholders. This restructuring will result in the Bollore family, which currently holds significant influence in Vivendi, retaining substantial control over both entities. Post-spin-off, the Bollore group is expected to own 30.6% of Canal+ and Havas, translating to 40% voting rights in Havas due to Dutch corporate law favoring long-term shareholders.
Additionally, Vivendi will create a third entity named Louis Hachette Group, which will manage its controlling stakes in media firm Lagardere and Prisma Media, France’s leading magazine press group. This entity will be listed on Euronext Growth in Paris, a market tailored for medium-sized companies.
Vivendi emphasised that Canal+ and Havas would emerge from the spin-off virtually debt-free. However, Vivendi itself may carry a net debt ranging from 1.5 billion to 2 billion euros ($1.63 billion to $2.18 billion). The final decision on the break-up is anticipated by the end of October, with a potential extraordinary shareholder meeting scheduled for December.
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Why it’s important
Vivendi’s break-up plan represents a dramatic departure from its previous strategy of developing a cohesive media empire across Europe. This restructuring aims to unlock greater value for its individual businesses, facilitating growth through acquisitions. By listing Canal+ in London and Havas in Amsterdam, Vivendi seeks to capitalize on international financial markets, potentially attracting a broader investor base and enhancing liquidity.
The move also ensures that the Bollore family retains substantial influence over these entities, preserving their strategic interests. The creation of the Louis Hachette Group consolidates Vivendi’s media assets under a new umbrella, providing a focused approach to managing its investments in Lagardere and Prisma Media.
This strategic pivot highlights Vivendi’s adaptability in responding to market dynamics and shareholder interests. The plan’s success hinges on shareholder approval and market reception, with Vivendi’s shares already showing a positive response, rising by 1.3% following the announcement.
