Vivendi U buys into Sogepaq

$40 mil deal strengthens distrib overseas

By EMILIANO DE PABLOS, JOHN HOPEWELL

MADRID -- Vivendi Universal subsid StudioCanal has taken a 45% stake in leading Spanish film distributor Sogepaq in a deal worth 47 million euros ($40 million).

The move will strengthen and simplify the existing links between StudioCanal and Sogepaq.

Vivendi U holds 21% of film and TV conglom Sogecable, Sogepaq's parent. Sogepaq has three product sources - StudioCanal in France, StudioCanal Spain, a joint acquisition venture between Sogepaq and StudioCanal, and third-party acquisitions.

With StudioCanal now a direct shareholder in Sogepaq, the distrib will look to channel far more Spanish films through StudioCanal's pan-European distribution network. StudioCanal will also be looking to fortify its distribution of pics in Spain via Sogepaq.

StudioCanal's stake in Sogepaq is a further example of Vivendi U streamlining its film interests and follows last week's operational merger of Universal and StudioCanal (Daily Variety, July 2).

Alison James in Paris contributed to this report