Vivendi Shares Rise on Breakup Plan
14 Décembre 2023 - 10:13AM
Dow Jones News
By Adria Calatayud
Vivendi shares jumped after the French media group said it will
explore a possible split into three businesses around Canal+, Havas
and an investment company housing a majority stake in
Lagardere.
At 0838 GMT, shares in Vivendi were up 8% at EUR9.68, having
been nearly unchanged since the beginning of the year through
Wednesday's close.
Vivendi said its split proposal seeks to address what it
described as the significantly high conglomerate discount it has
experienced since it spun out Universal Music Group in September
2021. This has reduced the company's valuation and limited its
ability to carry out growth transactions for its subsidiaries, it
said.
As of Wednesday's close, Vivendi's stock was down about 15%
since UMG began trading on Euronext Amsterdam.
The company said entities resulting from its breakup plan would
be listed on the stock market. The businesses would pivot around
television and film-production group Canal+ TV, advertising firm
Havas and an investment company that would include the recently
acquired majority stake in publishing and travel-retail business
Lagardere, 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," it said.
Vivendi had a market capitalization of 9.23 billion euros
($10.03 billion) as at Wednesday's close, according to FactSet.
Last year, it generated revenue of EUR9.595 billion.
Write to Adria Calatayud at adria.calatayud@dowjones.com
(END) Dow Jones Newswires
December 14, 2023 03:58 ET (08:58 GMT)
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