Chancellor declares Canal+ listing signals confidence in UK's future

In December 2024, Rachel Reeves, the Chancellor, welcomed the upcoming listing of Canal+ on the London Stock Exchange, which signifies a significant endorsement of the UK's financial markets. The meeting took place at Number 11 Downing Street, where Reeves conferred with Maxime Saada, Canal+'s chief executive, and Amandine Ferre, the chief financial officer. This event marks the LSE debut of Canal+ shares on a Monday, following its demerger from Vivendi, the media conglomerate led by billionaire Vincent Bollore. This strategic move aims to enhance the UK's reputation as an attractive destination for foreign companies to list and conduct business. Reeves emphasized that the creation of economic growth is her primary mission, and attracting foreign investment is essential to achieving this goal. She noted that Canal+'s listing would not only strengthen the UK's position as a global financial center but also benefit the £125 billion creative sector in the country. Canal+ has made strides in expanding its markets, particularly in Africa, and its films, such as Love Actually, have influenced audiences globally. However, it's important to note that the listing is a result of a demerger rather than an initial public offering, meaning that Canal+ will not be raising new cash from investors. Despite the optimistic outlook, the trading of Canal+ shares may face initial challenges. Funds that track France's Cac 40 index, where Vivendi is listed, are expected to sell off Canal+ shares as part of rebalancing their holdings due to the demerger. Also, financial implications from the French demerger tax could compel further selling of shares. This could result in Canal+ trading at a valuation below the previously estimated £6 billion. The significance of Canal+'s listing cannot be understated, especially in light of recent trends where numerous companies have shifted their primary listings away from London to other stock exchanges, particularly in New York. The listing of Canal+ thus serves as a much-needed boost to the LSE and reflects a broader commitment to improving the business environment within the UK.