Subject: FW: Vivendi short comment
Subject: Vivendi short comment
All,
Vivendi announced yesterday that
“ The Management Board of Vivendi proposed to the Supervisory Board – which gave its approval on the matter today – to explore the feasibility of a project to split the company into several entities, each of which would be listed on the stock market and structured around:
- Canal +
- Havas
- An investment company with listed and unlisted financial stakes in the cultural, media and entertainment sectors, which would notably include the majority stake in the Lagardère group
Very preliminary on VIV FP:
- Our SOP value is E15.6 per share
- VIV is currently trading at a 42.5% discount
- Canal + is 29% of the GAV, Havas is 16%
If
- Havas and Canal + are spun-off (tax free)
- The Investment company keeps all the debt and cash
- The investment company trades at a similar 42.5% discount than the current VIV discount
The combo is then worth today E12.4 per share.
Key questions will be:
- The discount to be applied on the Investment company
- What will Bollore do with it, will it ever be merged into Bollore (what is the point of having 2 separate investment vehicles?)
At 20% discount instead of 42.5% Vivendi is worth E14.1 per share.
VIV latest SOP as of Q3 2023:
Vivendi press release
Vivendi will study a project to split its activities into several entities
Since the distribution and listing of Universal Music Group in 2021, Vivendi has endured a significantly high conglomerate discount, substantially reducing its valuation and thereby limiting its ability to carry out external growth transactions for its subsidiaries.
Canal+, Havas and Lagardère are currently experiencing strong growth in an international context marked by numerous investment opportunities.
In order to fully unleash the development potential of all its activities, the Management Board of Vivendi proposed to the Supervisory Board – which gave its approval on the matter today – to explore the feasibility of a project to split the company into several entities, each of which would be listed on the stock market and structured around:
Canal+
Canal+ Group has experienced significant growth in recent years, reaching a subscriber base of over
25 million in nearly 50 countries. Following the acquisitions of M7 and SPI, the company has taken strategic stakes in businesses such as Multichoice, VIU, and Viaplay, demonstrating its ability to identify and seize promising opportunities across all its geographical areas. In light of these successes, Canal+ is well-positioned to capitalize on further consolidation opportunities on a global scale.Havas
As one of the global leaders in communications, Havas brings together over 23,000 employees spread across more than 100 countries. The group has maintained a steady pace of targeted acquisitions over the past two years, thereby strengthening its range of expertise and geographic footprint. Havas has also launched numerous innovative solutions to meet the needs of its clients. The impressive momentum demonstrated by Havas on a global scale paves the way for an accelerated development and the continuation of its successful transformation.
An investment company
An investment company with listed and unlisted financial stakes in the cultural, media and entertainment sectors, which would notably include the majority stake in the Lagardère group, a global leader in publishing and Travel Retail delivering remarkable performances.
The investment company would actively support the strategic development of its portfolio companies and would focus on value creation and capital return to its shareholders, through an effective portfolio rotation and a targeted reinvestment policy.
This split project would provide all the entities with the human resources and the financial agility necessary for their development.
This project will have to prove its added value for all stakeholders and include an analysis of the tax consequences of the various contemplated operations.
To conduct this study, Vivendi will be assisted by its usual banks and advisors.
An update on the progress of the study of this split project, and its feasibility, will be provided in due course.
Laurent Chekroun Equity Sales
Makor Securities London Ltd. | Makor Group
E: LCHEKROUN@makor-cm.com
M: +41 79 350 71 09
O: +33 1 42 33 02 05
W: www.makor-group.com
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