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Havas parent company Vivendi proposes project to split its businesses
The French mass media giant has got approval from its supervisory board to explore the potential of splitting the company.
In order to fully unleash the development potential of all its activities, Vivendi will breakup into three categories- Canal+, Havas and an investment company- Lagardère.
Since the distribution and listing of Universal Music Group in 2021, 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.
In a strategic turnaround to reinvigorate its businesses' value, Vivendi is contemplating splitting the company into distinct entities, aiming to enhance focus and valuation on the stock market.
Canal+
Canal+ Group has experienced significant growth in recent years, reaching a subscriber base of over 25 million in nearly 50 countries. Following the acquisitions of M7 and SPI, the company has taken strategic stakes in businesses such as Multichoice, VIU and Viaplay, demonstrating its ability to identify and seize promising opportunities across all its geographical areas. In light of these successes, Canal+ is well-positioned to capitalise on further consolidation opportunities on a global scale.
Havas
Havas brings together over 23,000 employees spread across more than 100 countries. The group has maintained a steady pace of targeted acquisitions over the past two years, thereby strengthening its range of expertise and geographic footprint. Havas has also launched numerous innovative solutions to meet the needs of its clients.
An investment company- Lagardère
An investment company with listed and unlisted financial stakes in the cultural, media and entertainment sectors, which would notably include the majority stake in the Lagardère group, a publishing and Travel Retail delivering company.
It would actively support the strategic development of its portfolio companies and would focus on value creation and capital return to its shareholders, through an effective portfolio rotation and a targeted reinvestment policy.
This split project would provide all the entities with the human resources and the financial agility necessary for their development. It will also have to prove its added value for all stakeholders and include an analysis of the tax consequences of the various contemplated operations.
An update on the progress of the study of the split project and its feasibility, will be provided in due course. To conduct this study, Vivendi will be assisted by its usual banks and advisors.