More than 97.5% voted to separate Canal+, ad business Havas and publisher Louis Hachette Group. They will begin trading on the London Stock Exchange, Euronext Amsterdam and Euronext Growth Paris, respectively, on December 16. About 72% of Vivendi shareholders were present at the vote.
Canal+ is known for its European pay-TV operations and is also the owner of Paddington in Peru‘s Studiocanal. It has been aggressively investing in international streamer Viu and Africa’s MultiChoice, and can now look forward to a more independent future, albeit still within the Vivendi group.
“We are delighted with the very high adoption rate of our spinoff project,” said Vivendi chairman Yannick Bolloré, whose family has led the demerger plan. “This indisputable result confirms this strong support of our shareholders for this transformative transaction.
“The Supervisory Board would like to warmly thank Arnaud de Puyfontaine and the whole Management Board, all the teams involved in this project, our different advisors and our shareholders for their trust. We are convinced that this new chapter for Canal+, Havas and Louis Hachette Group will be very promising and create value for all stakeholders.”
Vivendi’s board gave the split the go-ahead a month ago, as part of a move to tighten finances and give its verticals more flexibility. Despite floating on the London Stock Exchange, Canal+ will remain incorporated and taxed in France, and will not be required to follow mandatory stock market regulations on public offers in either its home country or the UK.
The initial spinoff plan was to leave Canal+ with virtually no debt, but it is set to begin trading with debt of €400 million ($433 million), of which about €225M will be related to the company’s investment in African content giant MultiChoice, as revealed last month. Former Paramount Global CEO Bob Bakish will take a spot on the Canal+ board next week once trading begins.
Canal+ launched in 1984 and was acquired by Vivendi 16 years later as part of a transaction that saw it grouped with Universal. Vivendi sold its Universal assets to General Electric, which formed NBCUniversal by merging the production biz with broadcaster NBC.
JP Morgan estimates Canal+ to be worth €6 billion ($6.3 billion).
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