Transaction summary
On April 29, 2024, Vivendi SE (OTC ADR: VIVHY, $10.51, market capitalization: $10.8 billion) announced its 2024 first quarter financial results and announced plans to split its business into four companies and list it on an exchange. He said that the study is progressing smoothly. Vivendi, one of the world's leading media conglomerates, is seeking to unlock shareholder value by pursuing the separation of Canal+ Group, Havas, Prisma Media's stake in Vivendi's Lagardère, and the investment company.
On December 13, 2023, the company announced that it is considering the feasibility of splitting into multiple publicly traded companies consisting mainly of Canal+, Havas, a publishing and distribution company (including Lagardère and Prisma Media), and an investment company. Announced. According to management, these companies are experiencing significant growth in an international context characterized by numerous investment opportunities. This separation ensures that value is delivered to all entities associated with the group. This facilitates the establishment of independent organizations, each with the necessary personnel and financial flexibility to independently pursue strategic growth objectives.
The reorganization is subject to approval by the Board of Supervisors. It will then consult with employees and representative bodies of affected companies. Following these discussions, the company will seek approval from creditors and regulators. In addition, approval by Vivendi shareholders is required at the annual general meeting scheduled for April 2025. The transaction is expected to take 12 to 18 months to close. The restructuring will require Vivendi to restructure its debt and secure financing, as adequate liquidity will be a key criterion for separation.
Vivendi has been assisted by its usual bankers and financial advisors in conducting its analysis of a possible separation.
Basis of the transaction
Since being distributed and listed by Universal Music Group in 2021, Vivendi has received a significant discount as a conglomerate, resulting in a significantly lower valuation and limiting the subsidiary's ability to execute on its external growth initiatives. has been done. Management believes that this deep discount is unwarranted given the solid growth opportunities experienced by group companies such as Canal+ Group, Havas and Lagardère. These companies are experiencing a favorable investment environment.
In a proposal submitted to the Supervisory Board on December 13, 2023, Vivendi's Management Board proposes to split the company into various entities in order to maximize the development potential of its activities. , each recommended that they consider the possibility of listing on the stock market.
The group will be split into Canal+ Group, Havas, a publishing and distribution company (Lagardère + Prisma Media), and an investment company. Each of these entities is independent and listed on a stock exchange. Following the reorganization, Vivendi will continue to be a listed company, supporting the growth of its subsidiaries and managing their investments.
Other transactions
On June 9, 2023, Vivendi received approval from the European Commission to proceed with its planned merger with the Lagardère Group, subject to fulfilling two commitments: the sale of 100% of the share capital of Editis and the sale of Gala magazine. announced that he had obtained it. 21 November 2023, following the sale of the entire issued share capital of Editis to International Media Invest on 14 November 2023 and the sale of Gala magazine to Groupe Figaro on 21 November 2023. , Vivendi confirmed the completion of the transaction with Lagardère Group. 2023.
Company Profile
Vivendi SE (parent)
Founded in 1853 and headquartered in Paris, France, Vivendi SE is an entertainment, media and communications company with operations in Europe, the United States, Asia and Africa. The company is involved in the music, television, video games, telecommunications, and publishing industries, and its divisions include Canal+ Group, Lagardère, Havas, Prisma Media, Gameloft, Vivendi Village, New Initiatives, and Generosity and Solidarity. As of December 31, 2023, Vivendi had 72,958 employees.
Canal+ Group (split company)
Canal+ Group is a prominent European media company primarily involved in the television industry. The division's extensive portfolio of television channels caters to a wide range of interests and demographics. It has expanded to online streaming with services like myCANAL, allowing subscribers to access content. Canal+ Group has approximately 26.4 million subscribers in approximately 50 countries.
Havasu (split)
Havas is a leading international advertising and communications company providing diverse marketing and communications solutions to clients in a variety of sectors around the world. We offer traditional advertising, digital marketing, media planning and buying, public relations, brand advisory, experiential marketing, and more.
Publishing/Sales (divided)
The publishing and distribution business will manage the businesses of Lagardère and Prisma Media. Mr. Lagardère focuses primarily on book publishing, covering a wide range of genres including literature, education, and picture books. Meanwhile, Prisma Media is a leading French magazine publisher offering a wide range of print and digital titles covering news, lifestyle, entertainment and fashion.
Investment company (split company)
The investment firm will hold interests in a wide range of culture, media and entertainment companies, including both public and private companies, as part of its strategy to diversify its investment portfolio.