Vivendi will pursue a stock market listing for its Canal+ Group pay-TV unit in London, the French telecom and media giant said on Monday in an update about its study to split into four companies.
“Canal+ would be listed on the London Stock Exchange to reflect the company’s international
dimension, particularly as part of the ongoing combination with [South African pay-TV giant MultiChoice],” the company said. “With close to two-thirds of its subscribers outside of France, a film and TV series distribution network present on all continents, and growth drivers resulting from its recent developments on the African, European, and Asia-Pacific markets, a London-based listing would represent an attractive solution for international investors likely to be interested in the group.”
However, Vivendi also emphasized that Canal+ “would remain a company incorporated and taxed in France and would not be subject to mandatory stock market regulations on public offers in either the United Kingdom or France.” In addition, depending on the success of its public tender offer for MultiChoice, Canal+ “could be subject to a secondary listing on the Johannesburg stock market,” Vivendi noted.
Meanwhile, Vivendi’s advertising business Havas would be listed in Amsterdam on the Euronext Amsterdam market, while its publishing business consisting of Lagardère, in which it owns a majority stake, and Prisma Media would be listed on the Euronext Growth exchange in Paris. Canal+ and Havas would have virtually zero net debt, the company also noted on Monday.
Growth at acquired publisher Lagardère, as well as Canal+ and Havas helped drive first-quarter revenue at the French media and telecommunications conglomerate, which is led by chairman Yannick Bolloré and CEO Arnaud de Puyfontaine. “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 firm said earlier in the year in explaining the plan for a split.
The rest of Vivendi would continue to operate and be listed on the Euronext Paris market. “Vivendi would continue to develop and transform [video gaming firm] Gameloft and actively manage a portfolio of investments (foremost among them being Universal Music Group) in sectors perfectly familiar to its teams for many years, while having the means and ambition to initiate new investments in related activities,” the company said on Monday. “Vivendi would also retain the minority interest it could acquire in Lagardère SA through the exercise of the transfer rights issued as part of the 2022 public tender offer, which remain exercisable until June 15, 2025. Vivendi would also provide a certain number of services to the three listed companies resulting from the split.”