july august | Page 5

London listing for Canal +?

Vivendi ’ s Management Board has updated plans to split up the conglomerate into three in order to release value . Under the plan , now with the Supervisory Board , the three operating companies would keep the decision-making centre of their activities , as well as their operational teams , in France : Canal + and Havas , although listed outside of France , would remain French tax residents for French corporate income tax purposes .

Canal + would be listed on the London Stock Exchange to reflect the company ’ s international dimension , particularly as part of the ongoing combination with MultiChoice . With close to two thirds of its subscribers outside of France , a film and TV series distribution network present on all continents , and growth drivers resulting from its recent developments on the African , European and Asia-Pacific markets , a London-based listing would represent an attractive solution for international investors likely to be interested in the group . Canal + would remain a company incorporated and taxed in France and would not be subject to mandatory stock market regulations on public offers in either the UK or France . Also , Canal +, depending on the success of its public tender offer for MultiChoice , could be subject to a secondary listing on the Johannesburg stock market .
Havas , with the majority of its activities being carried out internationally , would be listed as a Dutch public limited liability company ( NV ) on the Euronext Amsterdam stock exchange . As a result , Havas would be in the best possible position to carry out its new global strategy , continue its solid growth as well as its strong commercial and creative momentum , and stabilise its share capital , ensuring its sustainability for its talents and clients . To this end , a Dutch legal foundation would guarantee the preservation of the group ’ s independence and identity . There would be multiple voting rights , initially doubling after two years of holding , then quadrupling two years later , for long term committed shareholders , taking into account the length of time the Vivendi shares were held .
A newly named company , Louis Hachette Group , would bring together the assets
Canal + would be listed on the London Stock Exchange to reflect the company ’ s international dimension owned by Vivendi in publishing and distribution , i . e ., the Group ’ s current 63.5 %
shareholding in Lagardère SA and 100 % of Prisma Media . This company would be listed on Euronext Growth in Paris , consistent with the continued listing of its subsidiary Lagardère SA on the regulated market of Euronext Paris .
Vivendi says it would remain a leading player within the creative and entertainment industries , listed on the regulated market of Euronext Paris . Vivendi would also retain the minority interest it could acquire in Lagardère SA through the exercise of the transfer rights issued as part of the 2022 public tender offer , which remain exercisable until June 2025 . Vivendi would also provide a certain number of services to the three listed companies resulting from the split .
Since the distribution and listing of Universal Music Group ( UMG ) in 2021 , Vivendi says it has endured a significantly high conglomerate discount , substantially reducing its valuation and thereby limiting its ability to grow . To “ fully unleash ” the development potential of all its activities Vivendi initiated the feasibility study of a split project where Canal +, Havas and a company grouping the assets in publishing and distribution would become independent listings .
All three of these companies would keep the decision-making centre of their activities , as well as their operational teams , in France : Canal + and Havas , although listed outside of France , would remain French tax residents for French corporate income tax purposes .
A decision could be taken at the end of October 2024 with the aim of submitting it to an Extraordinary Shareholders ’ Meeting which could be held in December 2024 . This transaction would only be carried out if it were to be approved by a two-thirds majority of the shareholders .
In line with the strategic plan aimed at enabling the Group ’ s different businesses to seize investment opportunities in future , postsplit , Canal + and Havas would have virtually zero net debt , with the exception of the debt put in place by Canal + for the MultiChoice public tender offer . Louis Hachette Group would have no debt of its own except for Lagardère ’ s net debt of approximately € 2 billion which has recently been refinanced . Following the split , Vivendi could have a net debt of around € 1.5 to € 2 billion .
Following the allocation of the shares of the entities resulting from the split , the Bolloré group would hold approximately 30.6 % of the share capital and voting rights of Canal + and Louis Hachette Group . It would hold the same in Havas NV and could , due to the double voting rights , hold over 40 % of the voting rights . The implementation of this project is not expected to lead to the launching of a public tender offer for Vivendi or for any of its separated entities .
Digi acquires Portugal ’ s Nowo
Romanian telco Digi has agreed a € 150m deal to purchase Portugal ’ s fourth-largest telco Nowo from Spanish firm Lorca JVCO ( a joint venture between Orange and MásMóvil ).
Nowo has some 270,000 mobile and 130,000 fixed-line customers , as well as spectrum licences in the 1800 MHz , 2600 MHz , and 3600 MHz bands . It also serves 900,000 homes with a hybrid cable / fibre optic network and 150,000 homes with a fibre-only network .
The deal follows the rejection of a previous bid for Nowo by
Vodafone Portugal as a result of competition concerns . The acquisition is subject to approval by Portugal ’ s Competition Authority and National Communications Authority ( Anacom ).
Digi will need to demonstrate to regulators that its acquisition will benefit consumers by increasing competition and lowering prices .
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