UBS lowers Vivendi's Canal+ valuation on 'too optimistic' cash assumptions
** UBS lowers its valuation for Vivendi's VIV.PA Canal+ business IPO-GROU.L as assumptions around cash flow from operating activities were too optimistic during Capital Markets Day
** Canal+ is expected to bespun-off from Vivendi in December, pendingapproval from shareholders
** Brokeragebrings Canal+'s valuation down to 3 billion euros from 3.9 billion euros, and cuts Vivendi's PT by 9% to 10 euros ($10.56) from 11 euros
** "This is mainly driven by our lower expectations for
2025 unlevered free cash flow, now 185 million euros vs 305 million euros previously," saysUBS
** Adds thathigh capex investments byGVA, Canal+'s telco business in Africa,are "partly driving the weak cash flow conversion"
** Broker adds that Canal+ is likely waiting fordeal with MultiChoice MCGJ.Jto close before issuing further guidance
($1 = 0.9474 euros)
Reporting by Gianluca Lo Nostro and Leo Marchandon
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