French media group Canal+ to list in London as parent Vivendi plots split
The arrival in London would be seen as a victory for UK stock markets, but the decision still hinges on shareholder approval.
French TV business Canal+ is gearing up to list on the London Stock Exchange amid the break-up of its parent company Vivendi.
In plans announced on Monday, Vivendi will split its three main subsidiaries, Canal+, Havas and Lagardere, into separate companies.
“Canal+ would be listed on the London Stock Exchange to reflect the company’s international dimension, particularly as part of the ongoing combination with (South African TV giant MultiChoice),” the company said.
Vivendi said a London listing “would represent an attractive solution” because nearly two thirds of Canal+ subscribers are outside of France.
Canal+ listing in the UK is contingent on approval from shareholders, but it would be a boon to London markets, which have seen several companies either opt against listing in Britain, or move their listings abroad.
Notably, the Cambridge-based computer chip maker Arm listed in New York last year, in a mammoth 54 billion US dollar flotation.
Meanwhile, betting giant Flutter, building materials company CRH and plumbing firm Ferguson have all left the UK markets for the US in recent years.
Vivendi’s decision comes after it started a feasibility study to split up its operations following a poor performance on the French stock market.
The company said its status as a conglomerate is “substantially reducing its valuation and thereby limited its ability to carry out external growth transactions for its subsidiaries”.
Vivendi will bring together its publishing operations into a new company which would be called Louis Hachette Group.
That will be listed on the Euronext Growth market in Paris, while subsidiary Lagardere will be on the Euronext.
Decision making and operations of all three companies will remain in Paris, Vivendi said.
In a statement, Vivendi said: “Canal+ would remain a company incorporated and taxed in France and would not be subject to mandatory stock market regulations on public offers in either the United Kingdom or France.”
