Vivendi Spin-Off: Analysts Call for Clearer Strategies
Vivendi's management and leaders of its newly separated entities, including Canal+, Havas, and Louis Hachette Group, face pressure from investors to provide comprehensive strategic plans. The break-up, aimed at unlocking value, has raised concerns over the companies' future growth prospects.
Analysts and investors highlight the lack of clarity in strategy, absence of robust financial guidance, and uncertainty surrounding Canal+'s acquisition of MultiChoice as factors contributing to the weak performance of the standalone companies post-spin-off.
Only Louis Hachette shares have remained above their listing price, while Vivendi's overall valuation has exceeded its pre-split levels. However, the combined market capitalization of the four entities remains below Vivendi's value before the separation.
Canal+, the largest of the spin-offs, has faced particular challenges, with its shares experiencing a significant decline. Analysts attribute this to unfavorable macroeconomic conditions and the absence of a strategic roadmap.
Havas and Louis Hachette are set to release their annual results shortly, while Canal+'s reporting schedule is yet to be announced. Vivendi, Canal+, Havas, and Louis Hachette have declined to provide comments.
UBS analysts express concerns over the unclear path to shareholder value creation at Canal+. They point to the company's lacking dividend policy and financial guidance that falls short of expectations. The pending MultiChoice acquisition also introduces uncertainty, with analysts emphasizing the need for details on its profitability trajectory.
Minority shareholders have voiced opposition to the break-up plan, arguing that it diminishes their protection under French stock market regulations. Bollore's significant ownership stakes in the spin-offs have raised governance concerns.
Despite these challenges, investors seek a clearer understanding of the companies' long-term plans and the potential value creation opportunities. Analysts anticipate a clearer market view after the release of several quarters of financial results.