The irony {that a} French firm is about to grow to be the most important flotation in London for greater than two years, a time when homegrown company successes have shifted to the US, has not been misplaced on bankers within the Metropolis.
Canal+ is not only any French firm, however one which carries deep “cultural significance” throughout the channel, in keeping with Maxime Saada, who heads the streaming large and movie producer that’s a part of Vivendi, the media conglomerate managed by the billionaire Bolloré household.
Coming simply weeks after Canal+ placed on the Paddington in Peru premiere in London, the UK inventory change has rolled out its personal model of a crimson carpet after ministers overhauled and streamlined itemizing guidelines for the primary time in 30 years this summer time. Saada stated that London’s markets revamp “to make it as straightforward, as easy as potential” was a significant component in selecting the UK capital.
Canal+, which has a ebook worth of near €7bn, is predicted to have a market capitalisation of between €6bn and €8bn, stated folks near the itemizing. This may make it the largest primary listing in London since Haleon was spun out of GSK in 2022 at a market valuation of about £30bn, throughout a interval of exceptional drought for a worldwide inventory change that led to considerations over its guidelines and lack of home UK investor urge for food.
Canal+, which has produced hits together with Versailles, is the most important of three companies being spun out of Vivendi. If a $2.9bn deal to acquire South Africa’s MultiChoice completes early subsequent 12 months, the mixed enterprise might be value as a lot as €10bn, in keeping with these near the deal.
With the Bollorés having lengthy argued that the French market’s valuation of the Vivendi enterprise is lower than the sum of its elements, the cut up will take a look at how far more the corporate’s divisions will probably be valued individually.
Saada now must persuade UK traders that Canal+ — like Paddington — has discovered its proper residence in London, with plans to make use of the nation as a launch pad for international enlargement that he hopes might double the dimensions of the enterprise.
There have been simply over a dozen main listings in London this 12 months, in keeping with knowledge compiled by MKP Advisors, the largest of which was Raspberry Pi at about £540mn. Bankers wrestle to recollect the final time {that a} main French firm has crossed the channel for London.
Talking in an workplace within the Parisian suburb of Issy-les-Moulineaux that can proceed to be the headquarters for Canal+, Saada admits that the choice to relocate the corporate’s possession to the London inventory change disillusioned some within the Elysée.
He has sought to allay considerations in France — the place it would additionally proceed paying tax — however has additionally made it clear that the way forward for the corporate lies elsewhere, with London bringing better visibility as a worldwide firm and entry to worldwide traders.
“I imagine [the French authorities] are relieved that the corporate headquarters and tax construction is [in] France. We’re not the primary French firm [to list elsewhere]. After all, there are some opposed reactions and a few individuals are disillusioned. However after we inform our story . . . they perceive.”
Canal+ has near 27mn subscribers to its streaming and TV platforms throughout 50 nations, of which about 60 per cent are outdoors France, alongside a TV and movies studio arm. Within the first 9 months of 2024, the corporate reported a 3.2 per cent rise in revenues to €4.72bn.
“After we have a look at the trail for the longer term, the companions, the opponents, the markets, the traders, nearly all of them are English talking,” stated Saada.
“We was once a French firm, utterly counting on the French marketplace for its revenues, its earnings, its rights and most of its stuff. And we have now reworked into an organization that’s now worldwide. I can not say international but, however that’s the plan.”
M&A will kind a part of this plan. Including MultiChoice’s African enterprise, Canal+ can have greater than 40mn subscribers; Saada desires to take this to 100mn.
“We don’t need to overextend ourselves, and we’re very cautious on the best way we spend cash. However we want scale. At 27mn [subscribers], you might be already a sizeable participant. At 40mn/50mn, you might be undoubtedly a contender. Larger than that, it’s fascinating. That’s the solely subject.”
Canal+ is already contemplating taking a majority stake in Asian streamer Viu, whereas Saada says that Viaplay, the Scandinavian steaming service, might be one other potential goal.
Vivendi turned the most important shareholder after an emergency recapitalisation of the Nordic media firm this 12 months, though it has signed a standstill settlement with the second-biggest investor, the Czech group PPF.
“It’s a chance. And there are others. In case you have a look at vital pay TV gamers on the earth, there are others. I need to be able the place we is usually a consolidator,” stated Saada.
He says that the corporate was attracted by the brand new flexibility in guidelines for the London inventory change, with the corporate in impact set to function a hybrid of French guidelines allowed below its incorporation in that nation and London’s regime.
“We began talking [with the LSE] about what it means to be an organization headquartered in France and listed within the UK. We’re the one of our type, I imagine. So it implies that not all guidelines will apply to us.”
These embody London’s guidelines that board members be topic to re-election yearly, he stated, with Vivendi as an alternative implementing the French normal of greater than three years. The Bolloré household may also retain a stake of about 30 per cent in London-listed Canal+, equal to what it owns in Vivendi.
Because of this, Canal+ is unlikely to be eligible for inclusion within the FTSE 100 rankings. However Saada stated that the corporate was already attracting curiosity from traders within the UK, even when the corporate was nonetheless not clearly understood by all available in the market. He pointed to the necessity to present the capabilities of the corporate’s streaming platform, which bundles collectively content material from a lot of the giant US streamers in addition to a whole bunch of dwell channels and sports activities.
Not all present traders are blissful, nonetheless. Paris-based asset supervisor CIAM has raised concerns that minority shareholders will take successful and that the plan won’t shut the conglomerate low cost. It additionally warned that the household might additionally improve its stake with out launching a full takeover.
Vivendi declined on the time to remark however an individual with information of the state of affairs stated the group’s plan “was constructed on shareholder democracy”.
Saada added: “My focus is, and I imagine that’s what the Bollorés have confirmed up to now, to extend the valuation of the corporate for all shareholders.”
The choice to separate Vivendi is topic to a shareholder assembly on December 9, which requires two-thirds of votes to move. Saada is assured that it’ll.
By mid-December, he hopes to be on the entrance of London’s inventory change to have a good time its first day of buying and selling. And, regardless of requests, he says Paddington and his marmalade sandwiches won’t be with him this time.
