Vivendi shares surge after spin-off of Canal+, Havas, and Louis Hachette

Investing.com -- Shares of French media conglomerate Vivendi (EPA:VIV ) surged over 35% on Monday following the long-anticipated spin-off of its three key subsidiaries, namely, Canal+, Havas, and Louis Hachette Group. 

The spin-off, approved by shareholders on December 9, is reshaping the company’s profile while setting its spun-off entities on independent paths in Europe’s most prominent financial markets.

The restructuring, part of Vivendi's high-stakes plan, saw the media giant distribute its stakes in the three companies to shareholders, with each entity now preparing to begin independent trading on Monday. 

The move has attracted market attention, buoying Vivendi’s stock on Euronext (EPA:ENX ) Paris, where it resumed trading as a streamlined company minus the three subsidiaries. 

Among the spin-offs, Canal+, the media broadcasting powerhouse, has captured the lion’s share of attention as it prepares to debut on the London Stock Exchange (LON:LSEG ). 

With an estimated valuation of €6 billion, Canal+ becomes the largest listing on the London market in two years. Its decision to list in the UK was initially announced in July and is seen as a rare vote of confidence in the post-Brexit London Stock Exchange, which has struggled to attract high-profile new listings in recent years. 

The move has drawn praise from British officials, with Finance Minister Rachel Reeves hailing it as a sign of confidence in the UK’s capital markets.

Meanwhile, Havas, the globally renowned advertising company, is set to make its debut on Euronext Amsterdam. With a reference price of €1.79 per share, Havas is valued at €1.78 billion, making it a significant addition to the Dutch exchange. 

The decision to list in Amsterdam underscores the growing appeal of the city as a financial hub within the European Union, especially in the wake of Brexit.

Louis Hachette Group, Vivendi’s publishing arm, will trade on Euronext Growth Paris, a market dedicated to smaller and mid-sized companies. 

With an initial valuation of €1.1 billion based on its reference price of €1.12 per share, the spin-off positions Louis Hachette to expand its publishing and literary portfolio under the spotlight of the Parisian market. 

Additionally, Lagardère, which is majority-owned by Louis Hachette, will remain listed on Euronext Paris, ensuring the group retains a strong foothold in the French capital.

Source: Investing.com