Paris, December 20th 2007
Vivendi confirms the planned agreement between its subsidiary SFR and the Louis Dreyfus group relating to
the potential sale of the latter’s stake in Neuf Cegetel.
The transaction would represent an important step in SFR’s strategy by:
- investing in fiber optics capacity;
- accelerating its fixed-line/mobile convergence strategy for businesses and individuals;
- integrating a growing asset.
Commenting on the transaction, Jean-Bernard Lévy, Chairman of Vivendi’s Management Board, stated:
“This investment is a very attractive opportunity for Vivendi to strengthen its position and development in
one of its main business sectors. The planned agreement would make it possible to merge two companies
with increasingly complementary and healthy businesses and would create value for Vivendi shareholders.”
Following SFR’s purchase of Louis Dreyfus group’s stake at a share price of €34.50*, the transaction would
be completed by a public offering for Neuf Cegetel at a share price of €36.50*.
SFR would finance this transaction through debt, notably with Vivendi granting a loan under market terms.
To repay this loan, SFR has agreed to considerably reduce dividend payments that it would pay in the three
next financial years.
This transaction would contribute to an optimization of Vivendi’s financial structure. In order to preserve its
strategic and financial flexibility, Vivendi plans to raise funds of €1- €2 billion from its shareholders at the
appropriate time. The potential amount of this capital increase and the precise timetable will depend on
market conditions.
This transaction would be accretive for Vivendi in terms of adjusted net profit per share in 2009.