PARIS, December 20 /CNW/ - 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 Levy, 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 EUR 34.50(*), the transaction would be completed by a public offering for
Neuf Cegetel at a share price of EUR 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 receive in the three next
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 EUR 1- EUR 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.
(*)2007 coupon attached
This press release contains forward-looking statements with respect to
the financial condition, results of operations, business, strategy and plans
of Vivendi. Although Vivendi believes that such forward-looking statements are
based on reasonable assumptions, such statements are not guarantees of future
performance. Actual results may differ materially from the forward-looking
statements as a result of a number of risks and uncertainties, many of which
are outside our control, including, but not limited to, the risks described in
the documents Vivendi filed with the Autorite des Marches Financiers (French
securities regulator) and which are also available in English on our web site
(www.vivendi.com). Investors and security holders may obtain a free copy of
documents filed by Vivendi with the Autorite des Marches Financiers at
www.amf-france.org, or directly from Vivendi. The present forward-looking
statements are made as of the date of the present press release and Vivendi
disclaims any intention or obligation to provide, update or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise.
For further information:
For further information: Vivendi Media: Paris Antoine Lefort, +33 (0) 1
71 71 11 80 or Agnes Vetillart, +33 (0) 1 71 71 30 82 or Alain Delrieu, +33
(0) 1 71 71 10 86 or New York Flavie Lemarchand-Wood, +(1) 212-572-1118 or
Investor Relations: Paris Daniel Scolan, +33 (0) 1 71 71 32 91 or Laurence
Daniel, +33 (0) 1 71 71 12 33 or Agnes de Leersnyder, +33 (0) 1 71 71 30 45 or
New York Eileen McLaughlin, +(1) 212-572-8961