Vivendi paves the way for the acquisition of Lagardère with the acquisition of Amber

PARIS, September 15 (Reuters) – Vivendi on Wednesday announced its intention to acquire a new stake in Paris Match owner Lagardère, paving the way for a full takeover that would extend the influence of its controlling shareholder, Vincent Bolloré, on the French media landscape.

Vivendi (VIV.PA), which already owns 27% of Lagardère (LAGA.PA), has announced that it has agreed to buy the 17.9% stake in Amber Capital, for 24.10 euros per share, or approximately 610 million euros ($ 720.3 million) in total. He said he would later launch a take-over bid.

The sale of the shares could take months and requires prior regulatory clearances, including from the European Union, but Vivendi has said it will launch an offer at the same price once it lands the 45%. It aims for December 2022 at the latest.

In France, companies that exceed the 30% holding threshold are required to launch a full offer.

Vivendi and its largest shareholder, billionaire Bolloré, already exert influence over Lagardère and its media and publishing assets after Vivendi became Lagardère’s top investor last year.

But a full takeover would end in a feud over Lagardère, which at one point pitted its shareholder and luxury mogul Bernard Arnault against Bolloré.

The duo had their eye on Lagardère companies like the Sunday newspaper Journal du Dimanche, the Paris Match magazine and the radio Europe 1, which has already built bridges with the CNews television channel of Bolloré, a network that has been at the head of the hearings.

Arnault now owns 11% of Lagardère’s capital and has severed financial ties with the heir and CEO of the company, Arnaud Lagardère, after having initially invested in his holding. Read more

Amber Capital had led an activist campaign against Lagardère, largely succeeding in the governance overhaul she demanded after the company this year abandoned an obscure partnership structure that served as a backing for takeovers.

Other large shareholders who may now want to sell include the Qatar Investment Authority, which owns 11.5%.

A source close to Vivendi’s management said the company will continue to support Arnaud Lagardère as CEO of Lagardère.

($ 1 = 0.8469 euro)

Reporting by Gwenaelle Barzic and Sarah White in Paris Editing by Alexander Smith and Matthew Lewis

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