Investing.com -- France's Vivendi (OTC:VIVHY) has said that a study to explore the feasibility of a move to split the media conglomerate into several entities is "progressing," as first-quarter revenues spiked by nearly 87%.
Vivendi said that it is examining a partial break-up that would see television channel Canal+, advertising firm Havas, and "the company grouping the assets in publishing and distribution" into independent segments that would then be listed on the stock market.
Once separated, Vivendi itself would remain publicly listed and maintain its role of "supporting the transformation and expansion of its subsidiaries and continuing to actively manage its investments."
The company noted that, should its Supervisory Board authorize the split, the changes would be subjected to a consultation with employee representative bodies. After this process, it may be necessary to seek a number of regulatory approvals, along with a vote at an extraordinary general shareholders' meeting as soon as April next year, Vivendi said.
Supervisory Board Chairman Yannick Bolloré and Chairman Arnaud de Puyfontaine noted in a statement that the firm "will continue to keep the market informed."
The announcement comes as Vivendi's revenues in the three months ended on March 31 rose to 4.28 billion euros, up from 2.29 billion euros a year ago and above consensus forecasts. Vivendi said the uptick was due to the consolidation of its French publishing group Lagardère, as well as strength at Canal+ and Havas.