This was a repeated request from the large institutional shareholders of Vivendi.
For several years, the latter have been calling for the split or the distribution of Universal Music Group (UMG) to "
reduce the Vivendi conglomerate discount
".
This Saturday, the group says it is ready to give in.
In a press release, he announced his intention to study the distribution to Vivendi shareholders of 60% of UMG's capital and an IPO by the end of the year.
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Before acceding to this request, the group wanted to "
promote UMG at its fair value
" in order to "
better serve the interests of its shareholders and thus promote the achievement of its development plan for a large group of content, media and communication
”.
This is now done thanks to the sale of 20% of UMG's capital to the consortium led by the Chinese group Tencent.
An operation carried out on a basis of valuation of 30 billion euros of the world number one in music which brings together the artists Lady Gaga, Taylor Swift or Drake.
Listing scheduled on the Amsterdam Stock Exchange
The distribution of 60% of UMG's capital will be carried out exclusively in kind, Vivendi specifies, and will take place as an exceptional distribution (“
special dividend
”).
The listing of UMG shares, “
issued by the head holding company under formation
”, is scheduled for the Amsterdam Stock Exchange, on the regulated market of Euronext NV.
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The operation has already obtained "
a first favorable reception
" from the consortium led by Tencent.
An extraordinary general meeting of Vivendi shareholders, scheduled for March 29, will have to amend the bylaws in order to allow this distribution.
"
In the event of a positive vote by its shareholders, Vivendi will continue this project, with a general meeting approving the distribution which could be completed before the end of 2021,
" Vivendi wrote in its press release.
The group controlled by the Bolloré family is also announcing its intention to propose an ordinary dividend of 0.60 euros per share for 2020 at the general meeting which will rule on Vivendi's annual accounts on June 22.
