(Reuters) – Vivendi shares jumped on the stock market on Thursday morning, after the media group said it would study a plan to split its activities into several entities.
At 08:26 GMT, the stock was up 9.51%, against the CAC 40 up 1.54%.
In a press release published on Wednesday, the group explained that the management board had proposed to the Supervisory Board a project to split the group into several entities.
“Vivendi is suffering a very high conglomerate discount, significantly reducing its valuation and thus limiting its ability to carry out external growth operations for its subsidiaries,” explains the group.
The project would be structured around three entities listed on the stock exchange: Canal+, Havas, as well as an investment company which would hold financial stakes in companies in the culture sector, including Vivendi’s majority stake in Lagardère.
In a note, JPMorgan analysts believe that such a development “would put an end to the conglomerate discount and increase the value of Vincent Bolloré’s stake in Vivendi without him having to pay a premium; would facilitate external growth for Havas and Canal+; would facilitate the takeover of the two groups by Vincent Bolloré in the long term, because the price to pay would be lower.
The bank’s analysts also believe that the stock could jump up to 50% from its closing price on Wednesday if the conglomerate discount disappears in its entirety.
(Written by Corentin Chappron, edited by Kate Entringer)
Copyright © 2023 Thomson Reuters
I have over 8 years of experience working in the news industry. I have worked as a reporter, editor, and now managing editor at 247 News Agency. I am responsible for the day-to-day operations of the news website and overseeing all of the content that is published. I also write a column for the website, covering mostly market news.
