Canal+ Enters Negotiations To Acquire Minority Stake In UGC With Option To Buy French Cinema Group Outright In 2028

France’s Canal+ group announced on Tuesday that it had entered into negotiations with UGC to acquire a 34% minority stake in the historic French cinema company.

Following the acquisition of the minority stake, Canal+ would have the option, following agreement with UGC’s shareholders, to take full control of UGC from 2028.

UGC is a leading French cinema and audiovisual production group with one of France’s strongest cinema chains, content libraries, and networks of talent.

The group operates one of the largest cinema chains in France, with 48 French theaters in total and another seven sites in Belgium. Between they generate and tens of millions of admissions each year.

Its flagship multiplex in Paris, the UGC Ciné Cité Les Halles, is one of the most visited cinema in the world.

UGC’s content library includes popular, high-performing comedies and successful franchises such as Serial (bad) Weddings (Qu’est ce qu’on a fait au bon Dieu), iconic classic Amélie and TV series such as worldwide hits HPI – High Potential and Soleil Noir – under a Dark Sun.

French pay-TV giant Canal+ currently has 27 million subscribers spread across 52 countries.

Its in-house studio, Studiocanal, is one of Europe’s leading film and TV studios, with one of the largest catalogues, featuring IPs such as Paddington and Bridget Jones.

Canal+ said the signing of the proposed transaction will be subject, if applicable, to information and consultation of employees’ representative bodies.

“Since its creation in 1984, Canal+ has been the number one partner and supporter of French and European cinema,” said Canal+ CEO Maxime Saada.

“UGC has built a remarkable network of theatres, an exceptional library of content and outstanding IP. The growth of Studiocanal, led by Anna Marsh, is a priority for the Canal+ group, and combining our business with UGC would enable us to accelerate this development. This transaction demonstrates the group’s commitment to Cinema and theatrical exhibition, which play a vital role in showcasing and enhancing the value of films.”