French conglomerate Vivendi has confirmed plans to spin off and list its television business Canal+ on the London Stock Exchange today, in what would be another boon to the City’s bourse after signs of a revival in recent months.
In a statement today, the Paris-based media firm said it was pressing ahead with plans to list Canal+ in London to “reflect the company’s international dimension”.
“With close to two thirds of its subscribers outside of France, a film and TV series distribution network present on all continents, and growth drivers resulting from its recent developments on the African, European and Asia-Pacific markets, a London-based listing would represent an attractive solution for international investors likely to be interested in the group,” Vivendi said in a statement.
The spun-off television business would be incorporated and taxed in France and would not be subject to mandatory stock market regulations in either the United Kingdom or France, Vivendi added. A secondary listing of its shares in Johannesburg could also be on the cards, the company said.
The group’s break-up has been spurred by what it dubbed a “conglomerate discount” today, in which investors had underpriced the firm as a collective.
Under the plans, first revealed in December last year, Vivendi’s public relations firm Havas will also be spun off and listed as a Dutch public limited liability company on the Euronext in Amsterdam. A newly named firm called Louis Hachette Group will house Vivendi’s publishing and distribution businesses and list on Euronext Growth in Paris, while its listed subsidiary Lagardère will remain listed on the main market of Euronext Paris.
News of the potential listing of Canal+ will come as a boon to the London Stock Exchange after a quiet period for new listings on the market. Just eight new companies floated on the London Stock Exchange in the first half of 2024, raising £513.8m in total.
However, there have been signs of a revival in recent months after the debut of British computer firm RaspberryPi, which raised around £30m at a valuation of around £540m in June. Fast-fashion giant Shein is also said to be gearing up for a float in the coming months.
The FCA has also pushed through the biggest shake up of IPO regulation in three decades in the hope of tempting more firms into floating on the market, with changes set to come into effect at the end of this month.
City analysts have predicted that IPO activity will gather pace in the second half of the year as firms look to take advantage of the overhaul of rules.
“The London stock market is steadily gaining momentum after a challenging two years stifled by macroeconomic and geopolitical uncertainty,” Scott McCubbin, head of EY’s UK IPO business, said last month.
“[The FCA’s] reforms have been broadly well-received by the market and will enhance the UK’s appeal as a global listing destination,” he added.