The CFO of French media and telecoms conglomerate Vivendi, Philippe Capron, has confirmed that the board will consider spinning off its domestic mobile operator SFR in due time.
In a conference call today (26 July), he said Vivendi is looking at the…
The CFO of French media and telecoms conglomerate Vivendi, Philippe Capron, has confirmed that the board will consider spinning off its domestic mobile operator SFR in due time.
In a conference call today (26 July), he said Vivendi is looking at the option but declined to comment further.
Reports suggest Vivendi hopes to spin off SFR into a separate entity in mid-2014, which would remove the operator’s debt from Vivendi’s balance sheet.
Last month, SFR chairman Stephane Roussel said the operator was gearing up for an IPO, which could take place in late 2014 or early 2015, depending on market conditions. The unit has been valued at around €13bn (US$17.2bn) by analysts.
The operator’s revenue dropped by close to €1bn in 2012 compared with 2011 in the face of a price war in the French wireless market.
A split-off of SFR is reportedly unlikely to happen before Vivendi completes the sale of its stake in Maroc Telecom. A few days ago, UAE’s Etisalat entered exclusive talks with Vivendi for the acquisition of its 53% stake in the Moroccan incumbent. The exclusivity period ends on 25 September.
Meanwhile, Vivendi announced today the sale of its 85% stake in video game publisher Activision Blizzard to the company itself for US$8.2bn.
Last year, the French conglomerate launched a comprehensive strategic review of its units as it seeks to focus on its media operations.
