Vivendi’s shareholders have approved a plan to split the company into four separate entities, with over 97.5% voting in favor during a Paris assembly. This strategic division, led by Vincent Bolloré, is set to enhance shareholder value, despite some concerns about increased control. Each shareholder will receive shares in Canal+, Havas, and the Louis Hachette Group. The restructuring aims to address a significant conglomerate discount while maintaining a French presence, although some investors raise concerns over foreign listings.
Vivendi Shareholders Embrace Strategic Split
In a significant move for the French media and publishing titan, Vivendi, shareholders overwhelmingly endorsed the plan to divide the conglomerate into four distinct entities. This decision marks the beginning of an exciting new chapter for the company, firmly under the leadership of billionaire Vincent Bolloré.
During the general assembly held in Paris, all three proposed resolutions received a remarkable approval rate of over 97.5%. This pivotal vote is essential for facilitating the upcoming separation of the conglomerate, which will commence on December 16. Shareholders can look forward to new listings: Canal+ will debut on the London Stock Exchange, Havas will be listed in Amsterdam, and the Louis Hachette Group will find its place in Paris on the Euronext Growth market. Meanwhile, the Vivendi holding company will maintain its listing in Paris.
Insights from Leadership on Future Growth
As stated by Arnaud de Puyfontaine, the chairman of the board, this strategic split heralds a fresh phase for the group while remaining true to its core values. Following the announcement, Vivendi’s stock experienced a rise of 1.23% by the end of trading, with projections indicating a further increase of 1.26% at the opening on Tuesday.
Yannick Bolloré, son of Vincent Bolloré and the chairman of the supervisory board, expressed that prior to this operation, Vivendi’s stock price did not accurately reflect the true value of its assets. He highlighted the issue of a conglomerate discount, which had reached 44% in the past year, indicating that the whole was valued less than the sum of its individual parts. This situation, he emphasized, has posed challenges for both shareholders and the company’s growth.
While the split has generated excitement among some shareholders, others remain apprehensive about the potential for increased control by Vincent Bolloré. However, Yannick Bolloré reassured stakeholders that this division is intended to enhance value for all shareholders. He clarified that even though the Bolloré group holds a significant 29.9% stake in Vivendi, the consolidation is not aligned with their strategy.
According to the plan, shareholders will receive one share each of Canal+, Havas, and the Louis Hachette Group for every Vivendi share they possess, while retaining their Vivendi shares.
As Canal+ prepares for future endeavors, it has recently announced plans to withdraw its four pay channels from TNT beginning in June 2025, aiming to streamline costs. Additionally, the company will cut 250 positions, with a significant number related to the closure of its C8 channel on TNT.
Louis Hachette Group, which boasts a 66.5% stake in Lagardère SA and full ownership of Prisma Media, spans various sectors including publishing, distribution, and media. Under the conservative guidance of Vincent Bolloré, who has been at the helm since 2014, Vivendi will continue to support the growth of its 100% owned video game publisher, Gameloft, while managing minority interests in entities like Universal Music Group and Banijay.
As the four new companies emerge, they will be regarded as ‘cousins’ rather than ‘sisters’, as articulated by Arnaud de Puyfontaine. The headquarters will primarily remain in France, with the exception of Havas, and all companies involved will be recognized as French tax residents.
During the AGM, some shareholders voiced concerns regarding the decision to establish Havas and Canal+ in foreign locations, particularly Amsterdam, which they believe offers less protection for small investors. Activist fund CIAM, holding a mere 0.025% stake in Vivendi, has expressed intentions to pursue legal avenues to challenge the split, arguing it contravenes laws pertinent to mandatory public offers.
As Vincent Bolloré’s stake remains below the regulatory threshold of 30%, he has not been compelled to initiate a mandatory offer for Vivendi. Meanwhile, a demonstration titled ‘Disarm Bolloré’ attracted 100 to 200 participants who voiced their opposition outside the AGM, while Bolloré has consistently denied promoting any extremist ideologies.