French entertainment group Vivendi is investigating whether to split its advertising business Havas into a separate company listed on a stock exchange.
Havas would become one of three entities, along with cable television business Canal+ and an investment arm, including publisher Lagardère.
The move is designed to unlock the full value of the group's businesses.
"Since the distribution and listing of Universal Music Group in 2021, Vivendi has endured a significantly high conglomerate discount, substantially reducing its valuation and thereby limiting its ability to carry out external growth transactions for its subsidiaries," the company said in a statement.
Vivendi says Canal+, Havas and Lagardère are experiencing strong growth in an international context marked by numerous investment opportunities.
"As one of the global leaders in communications, Havas brings together over 23,000 employees spread across more than 100 countries," says Vivendi.
"The group has maintained a steady pace of targeted acquisitions over the past two years, thereby strengthening its range of expertise and geographic footprint.
"Havas has also launched numerous innovative solutions to meet the needs of its clients. The impressive momentum demonstrated by Havas on a global scale paves the way for an accelerated development and the continuation of its successful transformation."
Havas in October reported "very satisfactory" organic growth of 4.5% with net revenue of €654 million for the September quarter of 2023.
Vivendi then said Havas's business remained "dynamic" and supported by growth in all its divisions.
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