Canal+ and PPF take 29% each as Viaplay shareholders approve plan

Source: Viaplay

Viaplay shareholders have approved a restructuring plan that will see Canal+ Group and Czech investment outfit PPF each hold 29.3% of the company.

The Viaplay recapitalisation plan will raise SEK4 billion (US$390 million) in new shares, with debts to be written down or renegotiated.

Once the changes are completed, Canal+ will hold 1,342,833,333 class B shares and PPF will hold 1,341,208,619 class B shares, each stake corresponding to approximately 29.3% of Viaplay.

The Viaplay EGM also approved, the disposal of central and eastern European producer Paprika to Hungarian outfit Poblano, jointly controlled by Ákos Erdos, CEO and board member in several companies within Paprika Group, together with certain other key executives.

The recapitalization, which will see existing shareholders lose out, represents a remarkable turn of events for a company once seen as the poster child for how European players could achieve success in a streaming universe dominated by big US players.

The streaming outfit confirmed in December that it would exit international markets including the Baltics, Poland and the UK, as well as selling Paprika.

Unveiling delayed Q3 results late last year, CEO Jørgen Madsen Lindemann said that the route to profitability for international operaionts was “not clear or realistic”.

Canal+’s stake highlights the French pay TV operator’s return to international markets in Europe as part of its overall growth trajectory. The company followed up its acquisition of international pay TV outfit M7 Group with the announcement of a plan for the launch of its own-branded Dutch streamer late last year.

Canal+ parent Vivendi is meanwhile looking into a plan to split into three separate entities, with Canal+ Group to be listed as a separate company