TF1 to sell stake in Canal Plus to Vivendi

Tue Nov 24 2009, 17:40 PM UTC

France's biggest TV company, TF1, is set to sell its 9.9% share in pay-TV operator Canal Plus to Vivendi for EUR744m (USD1.1bn). The sale will be a welcome cash injection for TF1, which has suffered this year as a result of a decline in ad revenues.

Deal Details

  • Status pending
  • Amount US$1.1m
  • Buyer Vivendi
  • Seller TF1

The deal is set to increase Vivendi's stake in Canal Plus from 65% to 75%. This could increase next year if television group M6 and publishing group Lagardere sell their shares in the TV company. M6 currently has a 5.1% share in Canal Plus and Lagardere could sell its 20% stake at a price estimated between EUR1bn (USD1.5bn) and EUR1.5bn (USD2.2bn).

Vivendi’s debt as of September 30 was EUR8.3bn (USD12.4bn), EUR 1.1bn (USD1.6bn) of which accounts for purchasing the stakes in TF1 and M6. 

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