StudioCanal owner sees valuation lower than expected
French entertainment company Canal+ SA has seen its shares fall more than 15% on the first day of trading on the London Stock Exchange.
The company was spun off following a four-way split by French media giant Vivendi, whose board approved the move last week.
Canal+ shares opened at 290p on Monday morning but sunk to 242p by mid-morning, giving the company a valuation of £2.4bn - well below most analyst estimates.
The move has been closely watched by investors as an indicator of sentiment towards the media and entertainment sector.
Canal+ SA owns pay TV operations in France and StudioCanal, whose output includes movies such as Paddington in Peru to TV series ranging from Canal+ original Paris Has Fallen to ITVX drama Playing Nice, from James Norton’s Rabbit Track Pictures.
The group also owns stakes in streamers around the world, including Viu in Asia, MultiChoice in Africa and Viaplay across the Nordics.
Canal+ was spun off from Vivendi along with advertising firm Havas, which is listed in Amsterdam, and its publishing arm, Louis Hachette Group listed in Paris.
Vivendi also remains listed in Paris, with investments including Universal Music Group in its portfolio.
While Canal+ slumped, Vivendi’s shares were up 35% this morning, while Havas was up 8% and publisher Louis Hachette was up 25%.
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