PARIS (Reuters) – Shares in Vivendi surged on Thursday after the French media giant said it would examine splitting up into several entities, each of which would be listed on the stock market.
Vivendi shares were up 8.3% to 9.70 euros at 0844 GMT in heavy volumes, with the gains adding about 764 million euros ($833 million) to its market value, taking it to about 9.9 billion euros.
Vivendi said the businesses that could be spun off included its TV unit Canal Plus, advertising arm Havas, taken private by Vivendi in 2017, and an investment company holding its stake in French publisher and retailer Lagardere.
The break-up would increase the valuation of the spun-off units by removing a conglomerate discount and open up M&A opportunities, according to J.P.
Morgan analysts, who flagged Havas as an attractive bid target that could trade at a premium.
In October, Vivendi reported a rise in its third quarter revenues, driven by growth at Canal Plus and Havas.
Shares in Bollore, the holding company of French billionaire Vincent Bollore which is Vivendi’s biggest shareholder, rose 3.1%.
“The proposal unlocks value while at the same time making it easier … for Bollore to increase its stakes in the operating assets … at some point in the future,” said the J.P.
Morgan analysts, who expect the split process to take up to a year.
“It also means that Bollore does not need to pay a premium for non-operating assets that it does not see as strategic,” they added.
($1 = 0.9176 euros)
(Reporting by Sudip Kar-Gupta, Danilo Masoni and Piotr Lipinski; Editing by Mark Potter)
