Shareholders approve breakup of Bollore’s Vivendi media conglomerate

By Gianluca Lo Nostro, Leo Marchandon and Florence Loeve

(Reuters) -Shareholders of French media conglomerate Vivendi (OTC:VIVHY) accredited on Monday the breakup backed by the Bollore household, aiming to spin off Canal+, Havas and Louis Hachette Group regardless of some market scepticism and opposition from minority shareholders.

The motions acquired help from over 97% of the votes, a convincing win for the Bollore clan.

A two-thirds majority was required to validate the break up throughout a unprecedented basic assembly in Paris.

The approval got here amid protests towards the breakup outdoors the venue, resulting in the deployment of the CRS, the French police’s specialist crowd-control unit.

Greater than 100 organisations shaped an motion marketing campaign known as “Disarm the Bollore Empire,” alleging that billionaire Vincent Bollore was utilizing media to advertise France’s far proper.

Yannick Bollore, chairman of Vivendi’s supervisory board and Vincent’s son, dismissed such allegations on the shareholders assembly.

Vivendi’s broadcasting division Canal+ will likely be listed in London however headquartered in France, promoting company Havas will float in Amsterdam, whereas Louis Hachette Group, regrouping its publishing property, will commerce on Euronext (EPA:ENX) Progress in Paris.

The brand new entities will begin buying and selling on Dec. 16.

Shareholders will obtain one share in every of the brand new firms for each Vivendi share they maintain.

In accordance with JP Morgan, Canal+ is estimated to be value 6 billion euros ($6.3 billion), Havas is valued at 2.5 billion euros and Louis Hachette is estimated at 2.2 billion euros.

Minority traders CIAM and Phitrust publicly opposed the breakup, saying it might solely improve the Bollore household’s grip on the conglomerate. The household is Vivendi’s prime shareholder with 29.9%.

CIAM confirmed to Reuters its authorized proceedings towards the breakup would proceed.

“If the Bollore group wished to take management of Vivendi, it would not have chosen this operation,” Yannick Bollore mentioned throughout the assembly.

The chairman informed journalists after the vote he’s the long run and he has round six months to at least one yr to show to the market that the mission is profitable.

Following the assembly, Vivendi shares rose as a lot as 2.4%, with a big quantity spike after shareholders accredited the break up.