Vivendi says it may list Canal+ in London

By Louis Goss

Vivendi on Monday said it is considering listing its Canal+ film and television subsidiary on the London Stock Exchange in what would be a major win for the U.K.'s troubled bourse.

The French conglomerate -- which in December last year outlined plans to split itself into three separately listed companies -- said it has now completed a study showing it would be feasible to float Canal+ in London and list its Havas advertising public relations firm in Amsterdam.

The plans would also see a third newly-named company called the Louis Hachette Group - made up of Vivendi's publishing and distribution companies Prisma Media and Lagardère - listed in Paris on the Euronext Growth exchange for mid-sized companies, Vivendi said.

The Parisian media giant, which was first formed as a water company in 1853 before launching its Canal+ tv channel 130 years later, said a London listing would reflect Canal+'s international viewership and "represent an attractive solution to international investors."

Shares in Vivendi (FR:VIV), listed on the Euronext Paris stock exchange, were up 1% on Monday having gained 31% over the previous 12 months.

Vivendi's split plans are aimed at boosting its valuation, which it claims has suffered from a "significantly high conglomerate discount" since it spun off its Universal Music Group (NL:UMG) subsidiary in September 2021 by listing it on the Euronext Amsterdam stock exchange.

Investors have previously voiced concerns about a lack of synergies between the various strands of Vivendi's business, which include Canal+, pr and advertising firm Havas, specialist media company Prisma, and book publisher Lagardère Group.

The split plans would see Vivendi retain 30.6% stakes in each of the three subsidiaries, if the plans are now approved by the French conglomerate's shareholders.

Vivendi's plans would also come as a major win for the London Stock Exchange (UK:LSEG) which has suffered from a serious dearth of initial public offerings in recent years, driven by concerns about low valuations on the U.K.'s main market.

The situation has been worsened by a flurry of acquisitions of London listed companies by private equity firms and U.S. businesses that have seen dozens of firms pulled off the British bourse.

-Louis Goss

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07-22-24 0527ET

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