FRANCE. Media powerhouse Vivendi has struck an agreement to acquire 17.93% of the share capital in Lagardère Group, parent company of Lagardère Travel Retail, from fellow major shareholder Amber Capital. The Vivendi Management Board has accepted an offer of €24.10 per share for the 25,305,448 shares held by Amber Capital.
The move would increase Vivendi’s stake in Lagardère Group to 45.1% of the share capital (and 36.1% of the voting rights). This in turn could pave the way for a full takeover, with Vivendi exceeding the 30% share capital and voting right thresholds in Lagardère.
Once this happens, said Vivendi in a statement, “a mandatory proposal for a public offer at the same price for all Lagardère shares not yet owned by Vivendi will be filed with the French market authority (Autorité des Marchés financiers) in accordance with current regulation.”
A share offer at the price of €24.10 would value Lagardère at around €3.4 billion, compared to around €2.7 billion at close of trading today, according to Reuters. Group shares closed at €19.49, down by -2.65% in the day.
The share transaction with Amber Capital will be completed by 15 December 2022, once relevant approvals are gained “in light of the takeover that could result from the mandatory public offer following this acquisition”.
Vivendi said that the agreement does not affect plans to transform Lagardère from a partnership limited by shares to a joint-stock company, as reported on 28 April.
Commenting on the move, Lagardère Group said in a statement: “This project [to acquire Amber Capital’s shares] demonstrates Vivendi’s confidence in the relevance of Lagardère’s strategic model based on the complementarity of its activities and its operational efficiency. It confirms the respect of the integrity of the Lagardère group and the support given to its management.”
It added: “Lagardère’s Board of Directors will be invited, at the appropriate time, to give its reasoned opinion on the proposed public offer that will be launched if Vivendi completes this acquisition, in accordance with stock market regulations.”
