The “major” has a catalog including the Beatles, the Rolling Stones or Rihanna and Lady Gaga.
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Vivendi announced on Saturday February 13 its intention to IPO its subsidiary Universal Music Group (UMG) on the Amsterdam stock exchange by the end of the year. The French media giant wants to distribute 60% of UMG’s capital to its shareholders, in the form of an exceptional dividend. Based in Santa Monica (California), Universal is one of the “majors” dominating the world music market, with the Japanese Sony and the American Warner. The group has a catalog including the Beatles, the Rolling Stones and Rihanna and Lady Gaga.
“The large institutional shareholders of Vivendi have been calling for the split or the distribution of Universal Music Group (UMG) for several years to reduce the Vivendi conglomerate discount”, the group said in a statement. Vivendi’s management board had set a minimum valuation of 30 billion euros for its “major”. It is on this basis that the Chinese internet giant Tencent has just raised to 20% of the capital of UMG, he noted, also signaling “demand from new investors at potentially higher prices”.
“The proposed transaction received an initial favorable reception from the consortium led by Tencent, with whom the listing will be studied”, Vivendi said. He explains the choice of the Amsterdam Stock Exchange by its position “in a country where one of UMG’s historic headquarters was located”. The plan to distribute 60% of UMG in the form of an exceptional dividend will be submitted to a vote by Vivendi shareholders at an exceptional general meeting on March 29, said the French group, controlled by businessman Vincent. Bolloré.