French conglomerate Vivendi is planning to split off its domestic operator and primary revenue generator SFR this time next year to become autonomous of its parent, according to a report in Les Echos.
The media and telecoms conglomerate began a…
French conglomerate Vivendi is planning to split off its domestic operator and primary revenue generator SFR this time next year to become autonomous of its parent, according to a report in Les Echos.
The media and telecoms conglomerate began a strategic review last summer and decided to put its focus on its media assets and offload its two other telcos, Maroc Telecom and Brazilian unit GVT. However, a year later it is yet to complete any sales.
According to the French publication Vivendi hopes to sell Maroc Telecom by the end of the year, likely to Etisalat, and then split off SFR into a separate entity in mid-2014 which would remove the operator’s debt from Vivendi’s balance sheet.
GVT, which it could not attain a reasonable price for earlier this year, would reportedly stay as part of a more media-focused Vivendi group. However, the newspaper said the group still wants to dispose of GVT going forward, as the subsidiary requires significant investment to improve its network.
Vivendi declined to comment on the report.
Last month SFR’s 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.
In 2012 SFR accounted for €11.2bn of Vivendi’s €30bn total revenues, equal to 37% and more than twice as much as any other of the conglomerate’s businesses. However, the operator’s revenue dropped by close to €1bn in 2012 compared to 2011 in the face of a price war in the French wireless market.
