Vivendi shareholders approve controversial Canal Plus spinoff

In France, Vivendi shareholders approved a significant restructuring of the entertainment conglomerate by overwhelmingly voting for the spin-off of Canal Plus and other divisions. This decision occurred during a meeting held in Paris. Around 95% of shareholders supported the split, indicating a clear consensus among investors, despite some opposition from minority stakeholders. Canal Plus is anticipated to begin trading independently in London on December 16, 2024, marking a milestone for the company. The spin-off aims to enhance the market values of the individual business units after Vivendi, controlled by the Bollore family, seeks to streamline its operations. Analysts regard this move as a way to reinforce confidence in the London stock market, particularly in light of recent trends where several firms have exited this venue. Canal Plus, which is valued at approximately £5 billion, is set to attract a lot of investor interest. During the spin-off preparations, there were indications of legal challenges posed by activist investor CIAM, who expressed concerns that minority shareholders might be disadvantaged. CIAM holds a small stake in Vivendi and planned to pursue legal action to halt the demerger, arguing that it primarily benefits the top shareholders. However, a French court dismissed an injunction filed by CIAM, allowing the meeting to proceed unaffected. The restructuring is part of a broader trend within Vivendi to reshape its portfolio, notably through disaggregation, which will also see other business units like Havas and Hachette Group spun off and listed separately in Amsterdam and Paris, respectively. Analysts echo the sentiment that this event sends a powerful message that the London market remains attractive for international companies. Susannah Streeter, an investment analyst, pointed out that the UK's current political stability enhances its appeal compared to other European markets undergoing uncertainties. As Vivendi transitions into a holding company, it will continue managing a significant stake in Universal Music Group, which it previously spun off three years ago. The support for the Canal Plus spin-off reflects investors' confidence in the potential for future growth and value realization within separately listed entities.