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TF1 to sells its last shares in Canal+ French broadcaster TF1 has agreed to sell its 9.9% stake in Canal+ Group to Vivendi as early as the end of the year for €744m (US$1.1bn). TF1 owns part of Canal+ Group as a result to the merger of Canal+'s DTH platform, CanalSat, with rival TPS, 66% of which was owned by TF1. In January 2006, TF1 and fellow shareholder M6 agreed to sell part of their Canal+/TPS stakes for cash while retaining 9.9% and 5.5% of the new merged Canal+ Group respectively. The two were due to be allowed to sell their equity interests, guaranteed at €1.13bn, from February 2010. Earlier this year, TF1 announced it intended to sell its Canal+ shares because of its planned acquisition of AB Group's interests in DTT channels TMC and NT1 for €192m. France's competition authorities are due to rule on the deal by the end of the year. In a joint statement, Vivendi and TF1 today said that Vivendi was keen to acquire TF1's shares before the end of the year, and that if the agreement goes through the sale should be completed by December 31. The sale is timely for TF1 as it saw a sharp drop in profit this year because of poor advertising revenue. However, press reports suggest TF1 could have negotiated a higher price if it had waited for 2010, which is what M6 may do. The sale will leave Vivendi with 75% of Canal+ Group. The other main shareholder is Lagardère Group, which holds 20%. Lagardère has the opportunity to acquire another 14% of Canal+ by the end of this month, but has decided not to. On the contrary, it said it is considering selling its remaining share. Marie-Agnès Bruneau 24 Nov 2009 © C21 Media 2009 
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