According to the company’s announcement, Vivendi will list 60% of Universal Music Group on Euronext Amsterdam by the end of the year. The company’s minimum target is 30 billion euros (approximately $36 billion).
In a letter to employees received by Selection, Sir Lucian Grainge, CEO and Chairman of UMG, said “I couldn’t be more proud. I am steamed up.
We will endure making progress towards our strategic goals. We will continue to collaborate with our artists and composers. And we will continue to innovate and help the music community enter the next incredible chapter. In short, as we have said many times before, we will remain true to our mission. When we work with artists, we come together as an organization, and what we have access to is truly special.”
Vivendi’s annual meeting is scheduled for the end of March, he added. The company was late in presenting the final version of its IPO plan for 2022; the reason for this accelerated timetable – not to mention the announcement made Saturday morning – is not entirely clear, although it can be attributed to shareholder lobbying for an earlier decision.
Arnaud de Puyfontaine and Yannick Bolloré, directors of Vivendi, follow the report “The possibility of spinning off 60% of UMG into a subsidiary could be discussed at an Extraordinary General Meeting of Vivendi on March 29, 2021. If it involves, the plan will mark an entirely new part of what has been an established relationship between our companies for several years.
Vivendi stated that Tencent, which agreed late last year to acquire a 20% stake in UMG for 6 billion euros, is expected to receive a higher value this time around.
The company’s annual shareholders’ meeting is scheduled for June 22, followed by an earnings announcement on March 3.