Why Canal+ could be looking to list in London
Amid efforts by Vivendi to spin off parts of its business, its premium TV broadcaster Canal+ is reportedly considering London for an eventual listing.
The French conglomerate has been looking to split itself up since last year. Apart from Canal+, its advertising business Havas and its investment arm could also be spun off with the goal of unlocking value for the companies greater than the sum of Vivendi’s parts.
According to a report from Bloomberg, the Canal+ listing could take place by the end of the year.
Yannick Bolloré, chairman and CEO of Havas and chairperson at Vivendi, told The Media Leader previously: “On the one hand, we have very strong results with our activities, and on the other hand, when you look at the stock price, it doesn’t reflect the quality or the value of our assets.”
Shares of Vivendi have risen 10% since rumours of the listing were publicised last week.
The move could also be a boost to the London Stock Exchange. While still the largest stock market in Europe, the exchange has suffered since Brexit — over the past decade, the number of London-listed companies shrank 25%.
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Matthew Bloxham, a senior analyst at Bloomberg Intelligence, told The Media Leader that the move to list in London was “a bit of a surprise”, but Canal+’s expanding international footprint “might be better understood and appreciated” in London than, say, Amsterdam-based bourse Euronext.
Vivendi earned a net profit of €405m in 2023, thanks in part to revenue growth from Canal+ (up 3.2% year on year to €6bn). Canal+ grew subscribers by 900,000 last year and had a “record year” for its film production subsidiary StudioCanal.
Canal+ also raised its international investments in South African entertainment company MultiChoice Group, Hong Kong-based streaming operator Viu and Nordic pay-TV operator Viaplay.
As a result, Canal+ “could be looking at a valuation of €6-7bn”, according to martech analyst Alex DeGroote, based on how the market values comparable European TV businesses like ITV.
DeGroote told The Media Leader that the London Stock Exchange could be a natural fit for Canal+, given London has “historically had a strong media sector” with investors that “understand TV”.
“Canal+ would be far too small for US; there would be nil interest,” DeGroote added. “Amsterdam is a plausible alternative listing venue, but it’s not really known for media.
“Vivendi suffers from a conglomerate discount. In other words, it lacks corporate focus and this holds back the valuation. Vivendi will therefore be split up and shed this discount. London is probably the best option for Canal+ and the London stock Exchange will be pitching hard.”
Last week, the UK’s Financial Conduct Authority announced new rules for stock market listings that “aim to support a wider range of companies to issue their shares on a UK exchange, increasing opportunities for investors”.
Bloxham said the rules, which come into effect on 29 July, may “boost the exchange’s appeal with [Canal+] and its advisors”. That said, it is “hard to say” if Canal+’s potential London listing yet reflects a broader trend of investment returning to London.
As DeGroote put it: “The problem is billions of pounds of capital has already left the UK market in recent years and it’s a very long way back. Political stability may help going forward.”