© Reuters. FILE PHOTO: The brand of Vivendi is pictured on the primary entrance of the entertainment-to-telecoms conglomerate headquarters in Paris, France, April 22, 2021. REUTERS/Gonzalo Fuentes/File Picture
By Sarah White and Gwénaëlle Barzic
PARIS (Reuters) -Vivendi mentioned on Wednesday it was set to buy one other stake in Paris Match journal proprietor Lagardere, paving the way in which for a full takeover which might lengthen the affect of its controlling shareholder, Vincent Bollore, over France’s media panorama.
Canal+ proprietor Vivendi (OTC:) , which already has 27% of Lagardere, mentioned it had agreed to purchase Amber Capital’s 17.9% holding, for twenty-four.10 euros per share or round 610 million euros ($720.3 million).
It mentioned it might later launch a full bid for Lagardere on the similar worth, as soon as it has handed the 30% threshold requiring firms in France to make a takeover provide. That will worth Lagardere at round 3.4 billion euros, in comparison with its 2.7 billion euros market capitalisation at Wednesday’s shut.
If profitable, the acquisition of Lagardere will mark the top of what was as soon as certainly one of France’s nationwide industrial champions, which underneath its late founder used to have giant stakes in firms like airplane maker Airbus.
Inheritor and Chief Government Arnaud Lagardere has offered off elements of the conglomerate little by little. Final 12 months he introduced in traders like Vivendi and luxurious items tycoon Bernard Arnault when he was attempting to fend off an activist marketing campaign by Amber.
In addition to journey retail operations and a publishing enterprise, which incorporates the Hachette label, it nonetheless has influential media belongings which Bollore and Arnault have lusted after, sources near the matter have mentioned beforehand.
These embrace Paris Match, the Journal du Dimanche weekly newspaper and Europe 1 radio station, which has already constructed bridges with Bollore’s CNews TV channel, a community that has been topping scores since taking a conservative flip.
Bollore’s media intentions in France have ruffled feathers in President Emmanuel Macron’s internal circle, sources have mentioned, with some fearing his empire constructing may end in airwaves inundated in additional right-wing views forward of a 2022 presidential election.
The billionaire can also be set to money in as Vivendi prepares to listing and spin-off Common Music Group in September, elevating questions on how he may use the cash.
ANTITRUST
The Amber stake sale may take months to shut and requires regulatory authorisations first, together with from the European Union, however Vivendi mentioned it might launch a proposal on the similar worth as soon as it had clinched the 45%. It’s aiming for December 2022 on the newest.
Any subsequent takeover would even have to beat potential antitrust issues in different areas, as Vivendi additionally has a publishing enterprise, Editis.
However a lot of Lagardere’s shareholder would possible be able to promote out, together with the Qatar Funding Authority, which has 11.5%, individuals aware of the matter have mentioned.
LVMH boss Arnault, initially caught in a tug-of-war over Lagardere, has largely withdrawn from the battle. He now has an 11% stake in Lagardere and has lower monetary ties with the agency’s inheritor and chief govt, Arnaud Lagardere, after initially investing in his holding firm.
Lagardere mentioned in an announcement it was “delighted with the funding mission that Vivendi needs to hold out.”
Amber Capital had waged an activist marketing campaign towards Lagardere, largely succeeding within the governance overhaul it had wanted the agency this 12 months scrapped an arcane partnership construction that served as a buttress to takeovers.
Lagardere’s places of work in Paris have been raided as a part of a judicial investigation on Wednesday, in connection to the corporate’s earlier disputes with shareholders reminiscent of Amber.
A supply aware of Vivendi’s administration mentioned the agency would proceed to again Arnaud Lagardere as Lagardere’s CEO, and had knowledgeable him upfront of the transfer with Amber.
($1 = 0.8469 euro)