On April 29, 2024, Vivendi SE announced its plans to explore the split-off of its business into four separate entities and list them on exchanges. The company, a global media conglomerate, aims to unlock shareholder value by separating Canal+ Group, Havas, Vivendi’s interest in Lagardère with Prisma Media, and an Investment company. The reorganization is a strategic move to allow each entity to pursue independent growth objectives by providing them with the necessary personnel and financial flexibility.
The proposed restructuring of Vivendi is subject to approval from the Supervisory Board, employee consultation, creditor and regulatory authority approvals, as well as approval from Vivendi’s shareholders at the annual general meeting in April 2025. The transaction is expected to take 12 to 18 months to complete and will require Vivendi to restructure its debt and secure financing to ensure sufficient liquidity for the separation process. Vivendi is being assisted by its usual bankers and financial advisors in conducting the analysis of the potential split.
The rationale behind the restructuring of Vivendi stems from a significant conglomerate discount that the company has been facing since Universal Music Group’s distribution and listing in 2021. This discount has resulted in a decrease in valuation and has limited Vivendi’s ability to pursue external growth initiatives for its subsidiaries. Management believes that splitting the company into various listed entities will unlock the full development potential of its activities and provide the companies with favorable investment environments.
In addition to the split-off plan, Vivendi has been involved in other transactions, such as the merger with Lagardère group, which required the sale of Editis’ share capital and Gala magazine. These transactions were completed in November 2023, following approval from the European Commission. Vivendi’s diverse portfolio of businesses includes Canal+ Group, a prominent European media establishment with millions of subscribers, Havas, a leading international advertising and communications company, and a publishing and distribution division encompassing Lagardère and Prisma Media. The investment company will hold interests in a range of culture, media, and entertainment companies to diversify its investment portfolio.