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Lagardère threatens Canal+ France IPO
Lagardère Group has confirmed it will set in motion an IPO for its 20% stake in the French unit of Canal+, after talks with prospective buyer Vivendi failed to find fruition.
Vivendi has the right to a first look at Lagardère ’s stake according to a 2007 deal under which Lagardère has until 2014 to sell the stake. But the two companies failed to agree a price for the stake, which is valued at around €1.2 billion to €1.4 billion.
A brief statement from Lagardère said: “Since Lagardère and Vivendi have not reached an agreement concerning the sale of Lagardère's stake in Canal+ France, Lagardère has decided, in accordance with the shareholders agreement signed on January 4, 2007, to launch the initial public offering (IPO) process for Canal+ France.”
Vivendi owns the remainder of Canal+ France and has been moving towards simplifying shareholding structures. But the company will not buy at any cost, wanting a discounted price for the minority stake. A 5.1% stake was purchased from M6 at the start of the year for €384 million, following a previous purchase from TF1 of 9.9%.
Some observers have speculated that the announcement of the IPO by Lagardère is aimed at forcing Vivendi to come back to the table.
Lagardère Group has confirmed it will set in motion an IPO for its 20% stake in the French unit of Canal+, after talks with prospective buyer Vivendi failed to find fruition.
Vivendi has the right to a first look at Lagardère ’s stake according to a 2007 deal under which Lagardère has until 2014 to sell the stake. But the two companies failed to agree a price for the stake, which is valued at around €1.2 billion to €1.4 billion.
A brief statement from Lagardère said: “Since Lagardère and Vivendi have not reached an agreement concerning the sale of Lagardère's stake in Canal+ France, Lagardère has decided, in accordance with the shareholders agreement signed on January 4, 2007, to launch the initial public offering (IPO) process for Canal+ France.”
Vivendi owns the remainder of Canal+ France and has been moving towards simplifying shareholding structures. But the company will not buy at any cost, wanting a discounted price for the minority stake. A 5.1% stake was purchased from M6 at the start of the year for €384 million, following a previous purchase from TF1 of 9.9%.
Some observers have speculated that the announcement of the IPO by Lagardère is aimed at forcing Vivendi to come back to the table.