Qatar Holding, the investment arm of sovereign wealth fund the Qatar Investment Authority, said that it had no plans to take over French conglomerate Lagardère, despite becoming its largest shareholder late last year. Qatar Holding increased its stake in Lagardère – which owns the IEC in Sports, Sportfive and World Sport Group rights agencies through its Lagardère Unlimited division – from 7.6 per cent to 10.07 per cent just before Christmas.
Lagardère’s company structure, as a limited partnership with shares, effectively protects it against a hostile takeover. The company’s chief executive, Arnaud Lagardère, retains 14 per cent of the voting shares, while Qatar Holding now holds 7.87 per cent of Lagardère’s voting shares despite being the largest investor.
In a filing to Autorité des Marchés Financiers, the French stock exchange regulator, Qatar Holding said it would consider a “strategic partnership” with Lagardère and also plans to request a seat on Lagardère’s supervisory board. Qatar Holding said it had no immediate plans to sell its shares or its voting rights in Lagardère.
In November, Lagardère warned that full-year profits might be lower than forecast due to difficult trading conditions and the poor performance of its sports-related businesses.