UMG Universal Music Group NV

By Adria Calatayud

Vivendi shares jumped after the French media group said it will explore a possible split into three businesses around Canal+, Havas and an investment company housing a majority stake in Lagardere.

At 0838 GMT, shares in Vivendi were up 8% at EUR9.68, having been nearly unchanged since the beginning of the year through Wednesday's close.

Vivendi said its split proposal seeks to address what it described as the significantly high conglomerate discount it has experienced since it spun out Universal Music Group in September 2021. This has reduced the company's valuation and limited its ability to carry out growth transactions for its subsidiaries, it said.

As of Wednesday's close, Vivendi's stock was down about 15% since UMG began trading on Euronext Amsterdam.

The company said entities resulting from its breakup plan would be listed on the stock market. The businesses would pivot around television and film-production group Canal+ TV, advertising firm Havas and an investment company that would include the recently acquired majority stake in publishing and travel-retail business Lagardere, Vivendi said.

"This project will have to prove its added value for all stakeholders and include an analysis of the tax consequences of the various contemplated operations," it said.

Vivendi had a market capitalization of 9.23 billion euros ($10.03 billion) as at Wednesday's close, according to FactSet. Last year, it generated revenue of EUR9.595 billion.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

December 14, 2023 03:58 ET (08:58 GMT)

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