Vivendi’s supervisory board approved a plan floated last month to split the company into several entities, as it looks to increase the value of its business.

The company stated it will pursue a restructure outlined in December 2023 to split the business into four entities, all listed on the stock market.

It aims to unleash “the development potential of all its activities”.

The French company explained that since the distribution and listing of Universal Music Group in 2021, it had endured a high conglomerate discount, substantially reducing its valuation and limiting its ability to carry out external growth transactions for its subsidiaries.

As part of the split, the company would spin-out entertainment unit Canal+ and communications division Havas.

In addition, it would create a new entity to group assets in publishing and distribution, and an investment company which will own listed and unlisted financial stakes in the cultural, media and entertainment sectors.

“This project will have to prove its added value for all stakeholders and include an analysis of the tax consequences of the various contemplated operations,” Vivendi stated.

It plans to provide a further update on the split project on 7 March, when it reveals 2023 earnings details.