The American private equity fund HIG Capital, through its European subsidiary, has officially announced the signing of an agreement to acquire 75% of Lagardère Sports.
In December 2019, when it received the purchase offer from HI Capital, Lagardère announced a plan to refocus its strategy on Lagardère Publishing and Lagardère Travel.
According to management, the proposed sale valued Lagardère Sports at approximately €110 million and the entire Lagardère Sports and Entertainment division at approximately €150 million, not including the potential future value creation of the 25% stake in Lagardère Sports that the group will retain, nor the potential gains related to the contract with the Confederation of African Football.
However, on November 5, the confederation announced the unilateral termination of its agency contract with Lagardère Sports, the main holder of sports rights in the French-speaking region. This contract, relating to the marketing of media and marketing rights for major CAF sporting competitions, had bound the two parties since 2016 and was due to run until 2028. The announcement therefore puts an immediate end to this collaboration.
In response to the announcement, Lagardère chose to challenge CAF's unilateral decision, which it deemed "illegal, abusive, and unfounded."
Source: Press release