Vivendi’s supervisory board backs demerger plans

27 Nov 2013

The supervisory board of French media group Vivendi has approved the plan to demerge its telecoms unit SFR from its media business by setting up two separate companies, in a move designed to reduce its exposure in the telecoms market and focus on its more profitable media operations. As previously reported by TeleGeography’s CommsUpdate, in September 2013 Vivendi announced plans to establish a new international media group based in France, while its telecoms unit SFR was set to gain greater freedom in terms of its overall strategy and partnership development. According to a company press release, the demerger plan could see Vivendi shareholders receive shares in SFR on the day of the transaction. The group also added that the plan will be submitted to the relevant regulatory authorities in due course, and noted that it will be included on the agenda for the next annual shareholders meeting, which is due to be held in June 2014. If all approvals are secured, Vivendi’s largest shareholder Vincent Bollore will be appointed as the chairman of the board of the new Vivendi group.

France, SFR, Vivendi