-- Calls for EUR9 billion
distribution to Vivendi shareholders
NEW YORK, March 23, 2015 /PRNewswire/ -- P. Schoenfeld
Asset Management LP ("PSAM") today announced that on March 23 it submitted two resolutions (the "PSAM
Resolutions"), on behalf of select clients who own 7,500,000 shares
of Vivendi (EPA: VIV) (the "Company"), to the Vivendi Management
Board for inclusion on the agenda of the Company's Combined General
Meeting to be held on April 17, 2015.
PSAM's clients also own 3,189,281 additional shares of
Vivendi. In aggregate, the shares have a market valuation of
approximately €236,821,000 as of market-close on Friday, March 20, 2015. PSAM has been a
Vivendi shareholder since July
2012.
PSAM believes that Vivendi is significantly undervalued due to
its excessive cash holdings, inadequate capital return policy and
the uncertainty over Vivendi's future use of its capital.
Accordingly, the PSAM Resolutions propose that Vivendi distribute
an aggregate amount of €9 billion in an effort to close the
valuation discount. Specifically, the PSAM Proposals
stipulate that the payment to Vivendi shareholders would be in the
form of a special dividend as follows:
- An amount equal to €2,857,546,032.35 from distributable profit
for the year ended 31 December 2014;
and
- An amount equal to €6,142,453,967.65 from share issue premium,
merger premium and contribution premium.
PSAM also shared with the Management Board a white paper that
contains its analysis and views of Vivendi's cash holdings, stock
price discount and the benefits the PSAM Proposals present for
Vivendi shareholders. The highlights of the whitepaper
include:
- Vivendi is undervalued relative to its intrinsic value of
approximately €25.00-€27.50 per share and should restructure its
capital allocation strategy to close the discount to its sum of the
parts valuation.
- Excess cash on Vivendi's balance sheet is distorting the
potential returns for investors in the Company. PSAM
estimates investors could realize upside up to 38% on their
ownership of Vivendi based on its analysis set forth in the white
paper. This gain could be further magnified for investors who
choose to reinvest their distribution in Vivendi shares.
- Vivendi's share price has failed to outperform its peers over
the past year despite successful disposals of SFR and GVT at higher
than expected valuations and growth in the music streaming
market.
- PSAM's capital allocation strategy leaves Vivendi with €5
billion of excess cash, which could be used to significantly expand
its scope of operations.
- Strategic acquirers paying a control premium for either UMG,
Canal+ or both could be a source of additional upside.
About PSAM
PSAM was founded by Peter M. Schoenfeld and has been providing
investment advisory services since 1997, with offices in
New York and London. PSAM
has approximately $3.4 billion in
assets under management and invests in both equity and credit
securities in global event driven opportunities.
Additional Information
This press release is for
informational purposes only and is not intended to constitute, and
should not be construed as, an offer to sell, a solicitation of any
offer to buy, an offer to purchase or a solicitation of consents
with regard to any securities of Vivendi (the "Company", and such
securities, the "Securities").
This release may contain forward-looking statements. Such
statements can be identified by the use of forward-looking
terminology such as "believes," "expects," "intends," "may,"
"estimates," "will," "should," "plans" or "anticipates" or the
negative thereof or other variations thereon or comparable
terminology, or by discussions of strategy. These forward-looking
statements involve a number of risks and uncertainties that could
cause actual results to differ materially from the suggested by the
forward-looking statements. The information provided in this press
release is derived from PSAM's analysis and subjective views on the
Company and its Securities. Other persons, including the Company,
may have different analysis and views on the information provided
herein.
No reliance is accepted on this press release and PSAM disclaims
any liability in relation to this press release. Investors shall
only rely on their own assessment prior to taking any decision in
relation to the Company and/or the Securities. PSAM do not
undertake any obligation to publicly release any revisions to these
forward-looking statements to reflect events or circumstances after
the date hereof or to reflect the occurrence of unanticipated
events.
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