By Gianluca Lo Nostro, Florence Loeve and Paul Sandle
GDANSK/PARIS/LONDON (Reuters) – Vivendi administration and executives of a few of its newly spun out corporations – Canal+, Havas and Louis Hachette Group – want to put out extra clearly their methods to persuade buyers the break-up was price it, analysts and buyers stated.
The spin-offs in December, backed by the Bollore household, break up Vivendi into 4 multi-billion-euro corporations in a bid to unlock worth because the French media conglomerate’s general market capitalisation was estimated to be lower than the sum of its elements.
However among the standalone corporations had a weak begin, triggered partially by a ignorance about technique, some disappointing monetary steerage and uncertainty round pay-TV group Canal+’s acquisition of broadcaster MultiChoice, the analysts and buyers stated.
Shares in Vivendi’s newly listed companies fell of their first month of buying and selling to ranges under their mixed worth earlier than the break up, undermining the Bollore household’s hopes to spice up worth.
Solely Louis Hachette shares are at present above their itemizing value, and Vivendi is buying and selling above the final closing value earlier than the break up as adjusted by inventory change operator Euronext.
The mixed market capitalisation of the 4 corporations was 7.7 billion euros ($7.92 billion), based mostly on LSEG information as of the shut on Jan. 17. Earlier than the break-up, Vivendi was price about 8.3 billion euros, based mostly on LSEG information.
Canal+ listed in London, promoting company Havas debuted in Amsterdam and publishing enterprise Louis Hachette Group listed in Paris.
Canal+, the most important firm, has been the laggard, with its shares down 31% since they listed on Dec. 16.
Analyst Francois Godard at Enders Evaluation stated it had been not possible to separate the group on the optimum level within the cycle for all the corporations, and with its South Africa deal but to shut, Canal+ had suffered.
“Now they must take their time to clarify their enterprise,” he stated, referring to Canal+.
The market would have a clearer view within the second half of 2025 after a number of quarters of outcomes, he stated.
Havas and Louis Hachette report their full-year outcomes on March 5 and February 13 respectively. Canal+ has but to set a date for outcomes.
Vivendi, Canal+, Havas, and Louis Hachette in addition to representatives for the Bollore Group declined to remark.
UBS analysts stated final month that the break up had did not create worth on day one, including that the trail to shareholder returns is unclear at Canal+.
They ascribed the sell-off in Canal+ shares to monetary steerage falling in need of investor expectations and a scarcity of dividend.
