Billionaire Bollore Seeks Control of French Ad Company Havas
2014-10-17 22:00:00.0 GMT
By Kristen Schweizer and Marie Mawad
Oct. 18 (Bloomberg) -- Vincent Bollore is seeking to boost
his stake in Havas SA, in a move that would give the French
billionaire majority ownership of one of the world’s largest
advertising companies and more say in how it’s run.
Under the proposal, minority shareholders will get 9
Bollore Group shares, adjusted for a 1-for-100 stock split, for
every 5 Havas shares they hold, according to an e-mailed
statement yesterday. That’s a 19.5 percent premium to the French
ad company’s stock price and values it at 2.8 billion euros
($3.6 billion). Bollore Group currently owns about 36 percent of
Havas and would keep its Paris listing.
Havas, with annual sales of about 1.8 billion euros, is
France’s second-biggest ad firm, though ranks a distant No. 6
globally in the industry. The ad company would benefit from
better access to capital, said Bollore Group’s Chief Financial
Officer Cedric De Bailliencourt.
“This transaction gives Havas the benefit of the solid
financial resources of Bollore and the full benefit of the
Bollore Group’s international presence,” De Bailliencourt said.
Bollore is looking to “go beyond” a 50 percent ownership
stake in Havas, as well as “increase the free float of the
Bollore capital structure,” the CFO said.
Vincent Bollore, Bollore Group’s CEO, who has a net worth
of $4.5 billion, according to the Bloomberg Billionaires Index,
is also Chairman of Vivendi SA and a minority shareholder in
that company. After announcing more than $30 billion of asset
sales since last year, Vivendi is looking for opportunities to
expand its content production and distribution businesses.
Vivendi Expansion
Increasing his stake in Havas “will raise some questions
about whether Bollore’s end-game is to sell Havas to a third
party,” Ian Whittaker, an analyst at Liberum Capital Ltd.,
wrote in a note. “Vivendi will also inevitably get linked,
especially given its financial firepower post-disposals.”
Bollore Group yesterday appeared to try to quash
speculation surrounding a future sale.
“We have no intention to sell our controlling interest in
Havas,” the CFO said on the call.
Havas and Bollore Group shares were suspended in Paris
yesterday before the announcement. Havas last traded at 5.71
euros for a market value of 2.35 billion euros. Bollore Group
rose 3.1 percent to 378.85 euros, valuing the company at 10.4
billion euros. The holding company also has interests in
banking, shipping as well as electric cars.
Financiere de l’Odet shares last traded at 822 euros before
they halted trading.
“By strengthening its capital position through this public
offer, the Bollore Group underlines its will to pursue its long-
term commitment to Havas,” Yannick Bollore said in a separate
statement released by Havas. Yannick, Vincent’s son, took over
as chief executive officer of Havas in January.
A $35 billion merger between Omincom Group Inc. and
Publicis Groupe SA to dethrone advertising market leader WPP Plc
unraveled this year partly because of management clashes.
For Related News and Information:
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Havas Chief Bollore May Acquire Assets in Technology, Content
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Top Media: TOP MED <GO>
Top Stories: TOP<GO>
To contact the reporters on this story:
Kristen Schweizer in London at +44-20-7330-7526 or
kschweizer1@bloomberg.net;
Marie Mawad in Paris at +33-1-5530-6290 or
mmawad1@bloomberg.net
To contact the editors responsible for this story:
Kenneth Wong at +49-30-70010-6215 or
kwong11@bloomberg.net
Niamh Ring, James Callan
2014-10-17 22:00:00.0 GMT
By Kristen Schweizer and Marie Mawad
Oct. 18 (Bloomberg) -- Vincent Bollore is seeking to boost
his stake in Havas SA, in a move that would give the French
billionaire majority ownership of one of the world’s largest
advertising companies and more say in how it’s run.
Under the proposal, minority shareholders will get 9
Bollore Group shares, adjusted for a 1-for-100 stock split, for
every 5 Havas shares they hold, according to an e-mailed
statement yesterday. That’s a 19.5 percent premium to the French
ad company’s stock price and values it at 2.8 billion euros
($3.6 billion). Bollore Group currently owns about 36 percent of
Havas and would keep its Paris listing.
Havas, with annual sales of about 1.8 billion euros, is
France’s second-biggest ad firm, though ranks a distant No. 6
globally in the industry. The ad company would benefit from
better access to capital, said Bollore Group’s Chief Financial
Officer Cedric De Bailliencourt.
“This transaction gives Havas the benefit of the solid
financial resources of Bollore and the full benefit of the
Bollore Group’s international presence,” De Bailliencourt said.
Bollore is looking to “go beyond” a 50 percent ownership
stake in Havas, as well as “increase the free float of the
Bollore capital structure,” the CFO said.
Vincent Bollore, Bollore Group’s CEO, who has a net worth
of $4.5 billion, according to the Bloomberg Billionaires Index,
is also Chairman of Vivendi SA and a minority shareholder in
that company. After announcing more than $30 billion of asset
sales since last year, Vivendi is looking for opportunities to
expand its content production and distribution businesses.
Vivendi Expansion
Increasing his stake in Havas “will raise some questions
about whether Bollore’s end-game is to sell Havas to a third
party,” Ian Whittaker, an analyst at Liberum Capital Ltd.,
wrote in a note. “Vivendi will also inevitably get linked,
especially given its financial firepower post-disposals.”
Bollore Group yesterday appeared to try to quash
speculation surrounding a future sale.
“We have no intention to sell our controlling interest in
Havas,” the CFO said on the call.
Havas and Bollore Group shares were suspended in Paris
yesterday before the announcement. Havas last traded at 5.71
euros for a market value of 2.35 billion euros. Bollore Group
rose 3.1 percent to 378.85 euros, valuing the company at 10.4
billion euros. The holding company also has interests in
banking, shipping as well as electric cars.
Financiere de l’Odet shares last traded at 822 euros before
they halted trading.
“By strengthening its capital position through this public
offer, the Bollore Group underlines its will to pursue its long-
term commitment to Havas,” Yannick Bollore said in a separate
statement released by Havas. Yannick, Vincent’s son, took over
as chief executive officer of Havas in January.
A $35 billion merger between Omincom Group Inc. and
Publicis Groupe SA to dethrone advertising market leader WPP Plc
unraveled this year partly because of management clashes.
For Related News and Information:
Billionaire Bollore Returns to Brittany With Batteries Plant
NSN MTFLW16JIJUT <GO>
Interpublic CEO Roth Sees Ad-Industry Deals After Failed Merger
NSN N7C17Q6K50XY <GO>
Havas Chief Bollore May Acquire Assets in Technology, Content
NSN N2S7M66TTDS5 <GO>
Top Media: TOP MED <GO>
Top Stories: TOP<GO>
To contact the reporters on this story:
Kristen Schweizer in London at +44-20-7330-7526 or
kschweizer1@bloomberg.net;
Marie Mawad in Paris at +33-1-5530-6290 or
mmawad1@bloomberg.net
To contact the editors responsible for this story:
Kenneth Wong at +49-30-70010-6215 or
kwong11@bloomberg.net
Niamh Ring, James Callan