The market value of television broadcaster TVA Group momentarily crossed the $100 million threshold on Thursday, during a second consecutive day of speculation on the possibility of a complete buyout of its shares by its 65% controlling shareholder, the Quebecor group.
At the end of Thursday’s session, TVA shares were trading at $2.18, up 6.3% with trading volume still much higher than usual.
Earlier in the session, shares of TVA had climbed as high as $2.34, an interim rise of 14%, pushing the broadcaster’s total market capitalization just above 100 million.
The day before, Wednesday, shares of TVA had ended sharply up 20%, at $2.05, after the publication in Business Press a report on the possibility of a complete buyout of TVA Group’s share capital by Quebecor. Such a transaction would represent an estimated expense of fifty million dollars for the Quebec telecommunications giant (Videotron) and the media.
A welcome rebound
For minority shareholders of TVA, the considerable rebound in stock market value over the past two days is welcome after another episode of devaluation following the publication of disappointing quarterly and year-end 2022 results for the main television and Quebecor cinema.
These financial results at TVA were also accompanied by the announcement of the elimination of 240 positions in Quebecor’s media activities, including 140 at TVA in particular.
However, for TVA’s minority shareholders, the speculative rebound on the stock market in recent days remains a long way from restoring the value of their investment to its level of a year ago, around $3.60 per share.
On the other hand, this is still better than the depressed value around $1.60 per share experienced last January. While continuing to bet on the possibility of a full takeover offer of TVA shares on the stock market by Quebecor, at a price enhanced compared to their recent price.