Vivendi Divides Canal+ & Havas Biz On LSE

EE News Desk Jul 30, 2024

This move is viewed as a positive indicator for the city’s financial market, which has shown signs of recovery in recent months

Global content, media and communications conglomerate Vivendi has put forth its intention to spin off and list its television business, Canal+, on the London Stock Exchange. This move is viewed as a positive indicator for the city’s financial market, which has shown signs of recovery in recent months.

In a statement which was released a few days back, the Paris-based media company outlined its decision to list Canal+ in London, emphasising the business’ international reach. With nearly two-thirds of its subscribers outside France and a global distribution network for films and TV series, Canal+ is a significant player in the creation and distribution of cinema and audiovisual content across the globe and is strategically positioning itself to attract international investors.

Despite being listed in London, the spun-off television business will be incorporated and taxed in France. It will not be subject to mandatory stock market regulations in either the UK or France. Additionally, Vivendi mentioned the potential for a secondary listing of Canal+ shares in Johannesburg.

The decision to spin off Canal+ is part of Vivendi's broader restructuring effort aimed at addressing the ‘conglomerate discount’, where investors have undervalued the company as a whole.

Regarding the Havas split, the company announced that Havas, with most of its activities conducted internationally, will be listed as a Dutch public limited liability company (NV) on the Euronext Amsterdam stock exchange, which has already seen the success of Universal Music Group. Havas NV will be subject to Dutch stock market regulations and will adhere to the Dutch Corporate Governance Code.

Vivendi added, "As a result, Havas will be in the best possible position to execute its new global strategy, Converged, maintain its solid growth, and continue its strong commercial and creative momentum.”

"This move will also stabilize its share capital, ensuring sustainability for its talents and clients. To this end, a Dutch legal foundation will guarantee the preservation of the group’s independence and identity. Additionally, multiple voting rights will be offered to long-term committed shareholders, initially doubling after two years of holding and quadrupling two years later, with consideration given to the duration Vivendi shares were held for double voting rights," the company said.

This restructuring includes –

Havas, Vivendi’s public relations firm, will be spun off and listed as a Dutch public limited liability company on Euronext Amsterdam
A newly named entity, Louis Hachette Group, will house Vivendi’s publishing and distribution businesses and will be listed on Euronext Growth in Paris
Vivendi’s subsidiary Lagardère will remain listed on the main market of Euronext Paris

As per media reports, in the first half of 2024, Vivendi’s revenues reached €9,052 million, marking a 92.7 per cent increase compared to the same period in 2023. This significant rise was primarily due to the consolidation of its publishing company Lagardère, which contributed an additional €4,193 million. The revenue growth also reflected increases at Canal+ Group (+4.6 per cent) and Havas (+3.6 per cent).