VIVENDI : Oddo BHF confirms its recommendation on the share
February 21, 2024 at 12:00 pm
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Oddo BHF maintains its 'outperform' rating on Vivendi shares, with an unchanged target price of 13 euros.
The analyst provides an update on Groupe Canal+'s (Vivendi) non-binding offer for Multichoice, based on a price/share of RAND 105 (a 40% premium on the previous day's price).
This acquisition would entail a reorganization of assets, with Vivendi consolidating Multichoice's assets, potentially followed by disposals to reduce debt.
The new African entity would have significant sales and continental coverage, opening up opportunities in telecommunications, says the broker.
Governance would then be reorganized, with Vivendi potentially holding more than 50% of the capital.
Nevertheless, 'it is very difficult to calculate synergies, particularly as we have no figures for Canal+ Group Africa (and notably no sales). But these synergies do exist, and would enable us to create a much more solid group in the long term", assures Oddo BHF
In addition, an alliance with Comcast is envisaged, opening up opportunities in Europe and potentially in a future IPO.
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Vivendi SE consists of several leading companies in the content production, communication and media:
- Groupe Canal +: a leading operator in pay television in France, Benelux, Poland, Central Europe, Africa and Asia;
- Lagardère: publishing, media and travel retail group;
- Studiocanal: Europe's leading player in the production, acquisition, distribution and international sales of films and TV series;
- Havas: a world-leading communications group organized into three operating units that cover all businesses in the sector (creativity, media expertise and health/well-being);
- Prisma Media: market leader in French magazine publishing, online video and daily digital audience;
- Editis (discontinued operation): second French publishing group and leader in several fields including general literature, youth, practice, illustrated, comics, education and reference;
- Gameloft: a world leader in mobile video games;
- Vivendi Village: it is comprised of the international ticketing company See Tickets, the promoter and festival owner Olympia Production (France), the festival owner U Live (the United Kingdom), the Paris-based concert halls Olympia and the Théâtre de l'Oeuvre, the cinema and entertainment venues CanalOlympia (Africa), and the IP development agency and consultancy The Copyrights Group (IP development agency and consultancy);
- Dailymotion: one of the world's largest platforms for aggregation and distribution of video content (more than 350 million unique users per month);
- Group Vivendi Africa (GVA): a FTTH (Fiber to the home) operator active in Sub-Saharan Africa.