Chancellor says Canal+ itemizing is vote of confidence in UK

Rachel Reeves yesterday hailed the impending listing of a French TV and film giant on the London Stock Exchange as a ‘vote of confidence’ in the UK.

Ahead of the LSE debut of Canal+ shares on Monday, the Chancellor met the Paris-based firm’s chief executive Maxime Saada and chief financial officer Amandine Ferre at Number 11 Downing Street, to discuss the UK’s attractiveness 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’s capital markets, the stability we are delivering and our plan for change.’ Aside from boosting the UK’s standing as a global financial centre, she said Canal+’s arrival would boost the £125billion creative sector.

Canal+, which created films including Love Actually, has been expanding into new markets particularly in Africa. It is being listed in London as part of the break-up of owner Vivendi, the media conglomerate controlled by billionaire Vincent Bollore.

But as a demerger rather than an initial public offering, it will not be raising new cash from shareholders. And trading is likely to prove rocky to start with as funds that track France’s Cac 40, where Vivendi is listed, automatically dump the shares while others subject to a French demerger tax also weigh selling up.

It may mean that the company trades some way below a valuation of £6billion that has previously been placed on it. Nevertheless, the listing will provide the LSE with a welcome boost, after seeing scores of companies defect to rival exchanges.

This week, equipment rental firm Ashtead became the latest to shun London announcing plans to switch its primary listing to New York.