French broadcasting company Canal+ to Purchase Significant Interest in Leading French Cinema Chain UGC, Aims for Complete Takeover by 2028
Canal+, the French pay-TV company that was spun off from media group Vivendi and is listed on the London Stock Exchange, is in exclusive negotiations to acquire a 34% minority stake in UGC, one of France's largest cinema chains.
UGC operates major multiplexes in cities including Paris, Lyon, and Lille. The acquisition includes UGC Ciné Cité Les Halles in Paris, one of the most visited cinemas in the world.
The deal combines Canal+'s production and distribution arm, StudioCanal, with UGC's exhibition network of 55 theaters across France and Belgium. This collaboration aims to unite the production, distribution networks, and film libraries of both companies, thus enhancing their film business and supporting French cinema.
Maxime Saada, CEO of Canal+, stated that the UGC acquisition strengthens the company's commitment to cinema and theatrical exhibition. UGC owns a significant library of films and television series, including French blockbusters Amélie, the Serial (Bad) Weddings franchise, and the hit TV series HPI - High Potential.
Under the proposed UGC deal, Canal+ would acquire the initial stake and retain the option, subject to shareholder approval, to purchase the remaining shares from 2028. This gives Canal an option to take full control of UGC in 2028.
It's important to note that the acquisition does not specify any immediate changes to the management or operations of UGC. The UGC agreement is subject to consultation with employee representatives in accordance with European Union regulations.
Canal+ currently has nearly 27 million subscribers in 52 countries. The company is also pursuing a mandatory takeover offer for South African pay-TV group MultiChoice, pending regulatory approval. Additionally, Canal+ owns StudioCanal, which produces and distributes around 200 films annually.
Recently, Canal+ has increased its stake in Asian streaming service Viu to 37.2 percent with an option for majority control by 2026. This move signifies Canal+'s ongoing commitment to expanding its global presence in the entertainment industry.
At this time, no timeline for the completion of the UGC acquisition has been provided. The acquisition does not involve Robin Wright, as per the related news story. No other parties are mentioned to be involved in the acquisition, aside from Canal and UGC.
