Vivendi says that when examining a project, activities must be divided into different units

The Paris-based global media and entertainment group has announced that it is exploring a project to split its operations into several units.

The group said it had suffered a “heavy conglomerate discount” since Universal Music Group’s distribution and listing in 2021, resulting in a valuation lower than the sum of its parts, which in turn hampered its ability to sell its subsidiaries. limited operation. .

It pointed out that the subsidiaries Canal+, Havas and Lagardère are currently experiencing strong growth internationally and can benefit from numerous investment opportunities.

“In order to fully exploit the development potential of all its activities, the Board of Directors of Vivendi proposed to the Supervisory Board – which today gave its approval to the matter – the feasibility of a project to divide the company into different entities, to investigate. , each of which will be listed on a stock exchange,” the group said in a statement.

The new entities will be grouped around pay-TV giant Canal+ Group; The communications group Havas and an investment company with listed and unlisted financial investments in the culture, media and entertainment sectors.

The latter company will also have a majority stake in the Lagardère group, which is the market leader in publishing and travel retail.

Vivendi noted that Canal+ currently has a subscriber base of more than 25 million in nearly 50 countries.

The group is well positioned to take advantage of further consolidation opportunities on a global level following the acquisition of the independent pay-television group M7 in the Benelux and Central Europe as well as the global media company SPI and strategic stakes in companies such as Multichoice, VIU and Viaplay.

As for Havas, Vivendi said the group currently employs 23,000 people in more than 100 countries and has carried out a steady pace of targeted acquisitions over the past two years.

Vivendi said the investment company will actively support the strategic development of its portfolio companies and focus on value creation and return on capital for its shareholders through efficient portfolio rotation and targeted reinvestment policies.

It added that the split project would provide all companies with the human resources and “financial flexibility” needed for their development.

“This project must demonstrate its added value for all stakeholders and include an analysis of the tax implications of the various planned operations,” the statement said.

Vivendi is said to be supported by the usual banks and consultants to carry out the investigation.