(Boursier.com) — The Management Board of Vivendi presented to the Supervisory Board a progress update on the feasibility study of the demerger project announced on December 13, 2023.
Since the distribution-listing of Universal Music Group in 2021, Vivendi has suffered a very high conglomerate discount, significantly reducing its valuation and thus limiting its ability to carry out external growth operations for its subsidiaries. Canal+as in particular Havas Or Lagardère, are experiencing strong dynamism, in an international context marked by numerous investment opportunities. In order to fully release the development potential of all of its activities, the Vivendi Management Board proposed, on December 13, to the Supervisory Board the possibility of studying the feasibility of a project to split the company into several entities. , each of which would be listed on the stock exchange.
The Management Board today proposed to the Supervisory Board – which the latter accepted – to structure this split around 4 entities:
Canal+. The Canal+ group has experienced significant growth in recent years to reach a portfolio of more than 25 million subscribers in nearly 50 countries. After acquiring M7, then SPI, the company took strategic stakes in companies such as MultiChoice, Viu and Viaplay, thus demonstrating its ability to identify and seize promising opportunities across all its geographies. Building on its success, Canal+ is favorably positioned to exploit other consolidation opportunities on an international scale.
Havas. One of the world leaders in communications, Havas brings together more than 23,000 employees in more than 100 countries. The group has carried out a sustained pace of targeted acquisitions over the last two years, thus strengthening its field of expertise and its geographical coverage, and launched numerous innovative solutions to meet the needs of its clients. The great momentum displayed by Havas at the global level paves the way for an acceleration of its development and the continuation of its successful transformation.
A company bringing together assets in publishing and distribution. This newly created entity would bring together Vivendi’s majority stake in Lagardère and 100% in Prisma Media. Lagardère is a global group present in more than 40 countries and with more than 27,000 employees. It is the 3rd largest publisher of general public and educational books in the world and a major international trade operator in transport zones. It also brings together press and performing arts professions. Prisma Media is the leader in magazine press and online media in France with a portfolio of around thirty brands. This entity would promote collaborations between the different sectors of activity linked to publishing in its broadest sense.
An investment company. This investment company reportedly holds listed and unlisted financial interests in the culture, media and entertainment sectors. It would pursue an active policy of development of all of its holdings and would be focused on the creation of value and the return of capital to its shareholders through an effective rotation of its portfolio and a targeted reinvestment policy.
“This demerger project would give all activities the human resources and financial agility necessary for their development. This project must demonstrate its added value for all stakeholders and include an analysis of the tax consequences of the various planned operations “, explains Vivendi.
A new progress report on the study of the demerger project will be presented at the meeting of the Supervisory Board on March 7, the date of the publication of the Group’s 2023 annual results.