Vivendi plans to float Canal+ in London in boost to UK markets

Vivendi plans to float its French TV business Canal+ in London, providing a shot in the arm for the capital’s stock exchange after a number of high-profile companies opted for rival international financial centres such as New York.

The move is part of a drive to break up the media conglomerate controlled by the billionaire Vincent Bolloré in order to realise value from its different operations.

Vivendi said the decision to list in London reflected the increasingly international operation of Canal+, which is in the process of a $2.9bn (£2.2bn) takeover of Africa’s largest pay-TV operator, Multichoice.

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“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.

The announcement came in a statement updating the market on Vivendi’s plans to disaggregate its conglomerate structure, which the company said had substantially reduced its valuation.

Vivendi began the break-up process in 2021 with the €40bn flotation of Universal Music Group , the world’s biggest music company that is home to artists including Taylor Swift, in Amsterdam. That business is valued at €51bn (£43bn) and its share price has risen almost 30% over the past 12 months.

Paris-listed Vivendi also said on Monday that its advertising and media buying business Havas would be listed in Amsterdam. A third business, the publishing arm, newly renamed as Louis Hachette Group, will be listed on Euronext in Paris.

Canal+ is expected to have a secondary listing in Johannesburg, where Multichoice is based.

Vivendi said that the three companies to be listed as part of the break-up would keep their operational teams and decision-making in France.

Last year, Canal+ promised a total of $300m to buy a minority stake in Viu, the Hong Kong-based streaming service that has more than 66 million monthly users and 12 million paying subscribers.

The staggered deal, which has an option for Canal+ to take 51% control, will allow the French broadcaster to tap into a vast audience across Asia, the Middle East and South Africa.

Canal+ and Czech investment firm PPF each took a 29.3% stake in the ailing Nordic challenger Viaplay as part of a forced recapitalisation of the business.