Selwood Asset Management Statement on Progress at Canal+ and Hachette
Karim Moussalem, CIO (Equities) at Selwood Asset Management, has praised management at both Canal+ SA (CAN) and Louis Hachette Group SA (ALHG) for the pace of progress in engaging with investors and providing evidence of their commitment to long-term value creation, but has urged both companies to do more.
Since Mr. Moussalem's initial communication on April 9 about the underperformance of the companies, LHG's share price has rallied an impressive 29%, while Canal+ has surged by 58%*, reflecting the significant value being unlocked by both companies. This strong upward momentum is underpinned by their robust free cash flow generation and accelerating revenue growth, which stand as testaments to operational excellence and the inherent strength of their underlying business models.
Today Mr. Moussalem has urged the managements of both companies, especially LHG, to engage more closely with investors. Selwood owns about 1.5% of the free float of LHG and just under 1% of its capital, while the Canal + holding is just over 0.5% of both the float and the capital.
Mr. Moussalem said: 'With LHG, we have only very recently observed a tangible shift toward increased openness with investors and the market—a very welcome development. We encourage the company to build on these initial steps by providing greater clarity on operational targets, especially around Free Cash Flow (FCF) and Earnings Before Interest & Tax (EBIT) margin expectations once the ongoing restructuring of the travel retail and publishing divisions is finalised.'
Mr. Moussalem observed that recent discussions with LHG management have confirmed that the current gun jumping procedures involving Vivendi do not preclude the potential merger between Lagardere and LHG.
He said: 'We strongly believe that management should prioritise collapsing the dual-entity structure at the earliest opportunity. Upgrading LHG's listing from Euronext Growth to a higher market segment would not only enhance visibility but could also, by our estimates, generate close to 30 million shares of passive demand, further supporting valuation re-rating.'
'We believe LHG shares currently bear a triple-layered discount: first, relative to what we view as Lagardere's intrinsic fair value—which exceeds the Vivendi offer price of €24.10 from 2022; second, given that the Vivendi offer itself represented a premium to today's share price of approximately €20.50; and third, since that current price is still above the implied value reflected in LHG's own share price.'
Turning to Canal+, Mr. Moussalem noted its proactive engagement with the market. 'The company's transparent communication, consistent delivery of updates, and effective execution of roadshows have played a pivotal role in restoring investor confidence and turbocharging the share price rally,' he said.
In summary, the pace of progress at both Canal+ and LHG is evidence of their commitment to long-term value creation. 'We urge both management teams, and especially LHG, to accelerate their positive momentum by intensifying market communications and providing more detailed medium-term financial targets. This will be instrumental in attracting a broader investor base and fully unlocking the latent value in their shares,' Mr. Moussalem said.
*Performance of CAN and ALHG to August 8, 2025
View source version on businesswire.com:https://www.businesswire.com/news/home/20250810857961/en/
CONTACT: Media contactLondon
Bill McIntosh
Peregrine Communications Group
T: +44 (0)79 7070 8715
[email protected] York
Darius Athill
Peregrine Communications
T: + 1 917 970 8834
[email protected]
KEYWORD: EUROPE IRELAND UNITED KINGDOM
INDUSTRY KEYWORD: BANKING ASSET MANAGEMENT PROFESSIONAL SERVICES FINANCE
SOURCE: Selwood Asset Management
Copyright Business Wire 2025.
PUB: 08/11/2025 04:00 AM/DISC: 08/11/2025 04:00 AM
http://www.businesswire.com/news/home/20250810857961/en
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
18 minutes ago
- Yahoo
Morgan Stanley sees 3 things that could break the stock market's record-setting rally
The S&P 500 is hovering at record highs this summer. Despite mixed economic data, major indexes have proven resilient amid AI hype and solid earnings. Morgan Stanley warns that a cooling job market rising stagflation risk could break the rally. It's been a tumultuous summer for markets, but investors have mostly ploughed through the volatility and pushed stocks steadily higher — but one top bank is warning not to get comfortable. The S&P 500 is up 8% year-to-date, and the benchmark index is cruising near record highs in the late summer stretch. Solid earnings, a still-strong economy, and more AI hype have pushed stocks ever upward. However, Morgan Stanley thinks there are a few things that could snap the winning streak. Here's what the bank is looking at: A cooling labor market Since the July jobs report, fears have swirled that the recent strength in the job market may have been a mirage. Data from the Bureau of Labor Statistics showed that the US economy added 73,000 nonfarm jobs, short of the estimated 105,000. The revisions for the prior two months were also sharply negative. While the Trump administration has questioned the accuracy of the data, Morgan Stanley sees cause for concern. "We believe that the trend, if not the exact level, is substantiated by the broad data mosaic," Lisa Shalett, chief investment officer of the bank's wealth management group, wrote on Monday. "According to the Bureau of Labor Statistics' JOLTs survey, job openings fell to 7.44 million at the end of June, equating to a weak openings-to-job-seeker ratio of roughly 1:1," Shalett added. The report highlighted several other economic data points that point toward slower economic growth, including a survey from the Institute for Supply Management which showed new employment contracting at levels that may indicate a coming recession. Skewed Q2 earnings Shalett acknowledged that Q2 earnings season showed strong growth for many companies, particularly those in the tech sector. S&P 500 earnings beats have managed to remain at or above the 80% benchmark with a few weeks left to go. However, despite positive sentiment from investors, Shalett said that the a peak under the hood of the latest quarterly results tells a slightly different story. "Only three of the 11 major equity sectors—information technology, communication services and financials—posted double-digit gains," the report said. It added that while the members of the Magnificent 7 are growing at a rate of 26% for the year, that still leaves 493 companies that are barely up, if at all, on a year-over-year (YOY) basis. "Is the economy really robust if most of the largest-cap companies' profits are only in line with nominal GDP growth?" A potential "stagflationary" pause Shalett flagged two themes that have dominated economic conversations recently: inflation and the possibility of stagflation, which could curtail the forces pushing markets up. With President Donald Trump's trade war still raging, concerns about inflation have spiked, but the overall economy appears to be in good shape for now. However, Morgan Stanley said that this could be temporary. "This may be a case of pain delayed, not denied, as the most recent final-reciprocal-tariff announcements set rates nearly double the 10% level to approximately 18%," the report stated. Other analysts and commentators have raised similar concerns, noting that tariffs could cause the state of the economy to deteriorate, even as investor optimism remains robust. Read the original article on Business Insider Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
18 minutes ago
- Yahoo
Sugar Prices Continue Higher After Reports of Lower Cane Yields in Brazil
October NY world sugar #11 (SBV25) today is up +0.46 (+2.79%), and October London ICE white sugar #5 (SWV25) is up +11.30 (+2.38%). NY sugar prices today extended the 3-session rally and edged to a new 2-month high, taking out the previous high posted in mid-July. More News from Barchart Coffee Prices Settle Sharply Higher as Supplies Tighten Grain Traders Await Key USDA Report on August 12. Big US Corn, Soybean Crops Expected. What Game Is Being Played in Grains Early Monday Morning? Get exclusive insights with the FREE Barchart Brief newsletter. Subscribe now for quick, incisive midday market analysis you won't find anywhere else. Sugar prices are seeing strength on smaller sugar supplies from Brazil. Covrig Analytics said last Friday that reports of smaller cane yields from Brazil's sugar farmers may knock Brazil's 2025/26 sugarcane production below 600 MMT, much lower than Brazilian government crop forecasting agency Conab's forecast of 663.4 MMT. An excessive short position by funds could exacerbate any short-covering rally in sugar futures. Last Friday's weekly Commitment of Traders (COT) report showed funds increased their net-short positions in NY sugar futures by +25,923 positions to 151,004 short positions in the week ending August 5, the most in almost 6 years. Last Tuesday, sugar prices fell to 5-week lows on signs of stronger sugar production in Brazil. On July 31, Unica reported Brazil's Center-South sugar output in the first half of July rose +15% y/y to 3.4 MMT. Also, the amount of sugarcane being crushed for sugar by Brazil's sugar mills has increased to 54% from 50% the same time last year. The outlook for higher sugar exports from India is negative for sugar prices after Bloomberg reported that India may permit local sugar mills to export sugar in the next season, which starts in October, as abundant monsoon rains may produce a bumper sugar crop. India's Meteorological Department reported Tuesday that cumulative monsoon rain in India was 500.8 mm as of August 4, or 4% above normal. Also, the Indian Sugar and Bio-energy Manufacturers Association said last Thursday that it will seek permission to export 2 MMT of sugar in 2025/26. The outlook for higher sugar production in India, the world's second-largest producer, is bearish for prices. On June 2, India's National Federation of Cooperative Sugar Factories projected that India's 2025/26 sugar production would climb +19% y/y to 35 MMT, citing larger planted cane acreage. That would follow a -17.5% y/y decline in India's sugar production in 2024/25 to a 5-year low of 26.2 MMT, according to the Indian Sugar Mills Association (ISMA). Sugar prices retreated through early July, with NY sugar falling to a 4.25-year low and London sugar sliding to a 4-year low, driven by expectations of a sugar surplus in the 2025/26 season. On June 30, commodities trader Czarnikow projected a 7.5 MMT global sugar surplus for the 2025/26 season, the largest surplus in 8 years. On May 22, the USDA, in its biannual report, projected that global 2025/26 sugar production would increase by +4.7% y/y to a record 189.318 MMT, with global sugar ending stocks at 41.188 MMT, up 7.5% y/y. Sugar prices also have support from reduced sugar production in Brazil. Unica reported last Thursday that the cumulative 2025/26 Brazil Center-South sugar output through mid-July fell by -9.2% y/y to 15.655 MMT. Last month, Conab, Brazil's government crop forecasting agency, said 2024/25 Brazil sugar production fell by -3.4% y/y to 44.118 MMT, citing lower sugarcane yields due to drought and excessive heat. The outlook for higher sugar production in Thailand is bearish for sugar prices. On May 2, Thailand's Office of the Cane and Sugar Board reported that Thailand's 2024/25 sugar production rose +14% y/y to 10.00 MMT. Thailand is the world's third-largest sugar producer and the second-largest exporter of sugar. The International Sugar Organization (ISO) raised its 2024/25 global sugar deficit forecast to a 9-year high of -5.47 MMT on May 15, up from a February forecast of -4.88 MMT. This indicates a tightening market following the 2023/24 global sugar surplus of 1.31 MMT. ISO also cut its 2024/25 global sugar production forecast to 174.8 MMT from a February forecast of 175.5 MMT. The USDA, in its bi-annual report released May 22, projected that global 2025/26 sugar production would climb +4.7% y/y to a record 189.318 MMT and that global 2025/26 human sugar consumption would increase +1.4% y/y to a record 177.921 MMT. The USDA also forecasted that 2025/26 global sugar ending stocks would climb +7.5% y/y to 41.188 MMT. The USDA's Foreign Agricultural Service (FAS) predicted that Brazil's 2025/26 sugar production would rise +2.3% y/y to a record 44.7 MMT FAS predicted that India's 2025/26 sugar production would rise +25% y/y to 35.3 MMT due to favorable monsoon rains and increased sugar acreage. FAS predicted that Thailand's 2025/26 sugar production will climb +2% y/y to 10.3 MMT. On the date of publication, Rich Asplund did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Sign in to access your portfolio
Yahoo
18 minutes ago
- Yahoo
Gatwick passengers warned of severe August delays amid baggage screener strike
Holidaymakers flying from Gatwick Airport could face severe delays as baggage screeners prepare to strike over pay, the UK's largest union has warned. The walkout, set for later this month and covering the August bank holiday, is expected to disrupt travel for thousands of passengers. Baggage screeners will strike from August 22 to August 26 and from August 29 to September 2, Unite the Union has said. All flights out of Gatwick will face disruption during these times, the union said, warning industrial action will intensify if the dispute is not resolved. Unite general secretary Sharon Graham said'ICTS has more than enough money to offer these workers a fair pay rise. Not doing so is just corporate greed. 'ICTS' Gatwick workers will receive Unite's complete backing for as long as it takes during their strikes for fair pay.' Unite has said workers, employed by ICTS, are amongst the lowest paid workers at the airport and earn just above the minimum wage. Despite this, ICTS's turnover has grown by 110 per cent since 2020, reaching £170.59 million in 2024, the union said. It made a profit before tax of £6.1 million in 2024, a 46.9 per cent increase compared to the year before. Unite regional officer Ben Davis said: 'ICTS is entirely responsible for the disruption that will be caused to Gatwick passengers during the strike action. It can well afford to put forward an acceptable pay offer and that is what needs to happen. 'Despite performing a critical role, these workers are amongst the lowest paid at the airport. Gatwick should be stepping in and pressuring ICTS to put an improved offer forward.' A spokesperson for Gatwick said the airport does not anticipate significant disruption if strikes were to go ahead. They said: 'We are working with our suppliers to avoid any impacts and we expect to operate a normal summer holiday flight schedule for our airlines and passengers on these dates. Of course, we hope ICTS and their union can reach a resolution before then.' ICTS has been contacted by The Standard for comment.
