Companies praised for improving investor engagement but urged to do more

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

About Selwood
Selwood Asset Management LLP is an alternative investments manager based in London and Paris. It was founded in 2015 to manage liquid credit strategies in Europe and North America. Since 2021 it has run an active equity strategy.

View source version on businesswire.com: https://www.businesswire.com/news/home/20250810857961/en/

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