French conglomerate Vivendi aims to spin off local telecoms unit SFR by the end of the first half of 2014.
Speaking during a conference call on Vivendi’s Q3 results, CFO Philippe Capron said work on the demerger is progressing “at a good…
French conglomerate Vivendi aims to spin off local telecoms unit SFR by the end of the first half of 2014.
Speaking during a conference call on Vivendi’s Q3 results, CFO Philippe Capron said work on the demerger is progressing “at a good pace”.
Acknowledging the complexity of the project, Capron, who will leave the group in January, stressed that the company has the support of advisers who have worked on similar demergers and is prepared to deal with the challenges ahead.
“We’ve looked at all the aspects – regulatory, legal, social, tax, financing, whatever – and we’ve not identified any roadblocks. It doesn’t mean everything is going to be easy […] but we feel confident that this can be done and be done in time.”
Capron said he believes the demerger will benefit Vivendi shareholders “by removing the conglomerate discount on SFR” and “revealing the true value and growth potential of our media businesses”.
Asked about the attractiveness of Numericable to SFR, Vivendi deputy chief CFO Sandrine Dufour said there is no time to think about the French cableco, despite the fact it is being listed.
“It’s a major step for SFR to get listed and we are fully dedicated to this major project, so I will not comment on Numericable,” she said. Dufour stressed that the demerger of SRF will be the key strategic priority for management over the next month.
Societe Generale and Citigroup are thought to be the lead advisers on SFR’s planned IPO. Media reports have suggested Goldman Sachs, BNP Paribas, Lazard and Bank of America Merrill Lynch might also take roles in the transaction.
Asked whether a new sale of Brazilian telco GVT is possible, Capron said the yet-to-be-appointed management team for the new, demerged media group Mediaco will make the decision.
“The new management of Mediaco will have to come up with a new equity story and overall strategy. And within that, they will have to determine how GVT fits in.”
SFR’s revenues for the first nine months of 2013 were down 10.5% to €7.6bn, while core operating profits were down 19.5% to €2.74bn.
Capron said he believes SFR’s operating profits will bottom out next year and return to growth in 2015.
