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Rachel Reeves yesterday hailed the imminent listing of a French TV and film giant on the London Stock Exchange as a “vote of confidence” in the UK.
Ahead of the presentation of Canal+ shares on the LSE on Monday, the Chancellor met the Parisian company’s chief executive, Maxime Saada, and chief financial officer, Amandine Ferre, at 11 Downing Street, to discuss the attractiveness of the United Kingdom as a destination for foreign companies to list and do business.
Reeves said: “Economic growth is my number one mission and attracting more investment to the UK is key.”
“Canal+’s decision is a vote of confidence in the UK capital markets, the stability we are providing and our plan for change.” As well as boosting the UK’s position as a global financial centre, he said the arrival of Canal+ would boost the £125bn creative sector.
Vote of confidence: Canal+, creator of films like Love Actually, expands into new markets
Canal+, which created films like Love Actually, has been expanding into new markets, especially in Africa. It is listed in London as part of the break-up of owner Vivendi, the media conglomerate controlled by billionaire Vincent Bollore.
But since this is a spinoff and not an initial public offering, it will not raise new cash from shareholders. And deals are likely to prove difficult to begin with, as funds tracking France’s Cac 40, where Vivendi is listed, automatically offload the shares, while others subject to a French spin-off tax also consider selling.
It may mean the company is trading well below the £6bn valuation previously assigned to it. However, the listing will provide the LSE with a welcome boost, after seeing dozens of companies defect to rival exchanges.
This week, equipment rental company Ashtead was the latest to bypass London and announce plans to move its main listing to New York.
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