PARIS (Reuters) – Vivendi said Saturday that it plans to distribute 60% of Universal Music’s capital to investors, subject to shareholder approval, and that it is its most valued asset, home to singers like Lady Gaga and Taylor Swift, by the end of the year.
The plan to list Universal is part of a process started by Vivendi’s largest shareholder, French billionaire Vincent Bollore, to capitalize on the music industry’s revival.
“Vivendi’s major institutional shareholders have been pushing for a number of years to split or distribute Universal Music Group (UMG) to reduce Vivendi’s conglomerate discount,” Vivendi said in a statement.
The French conglomerate said the distribution would take the form of a special dividend.
UMG, a holding company currently being incorporated in the Netherlands, will apply for a listing on Euronext in Amsterdam.
The transaction has received a favorable response from the consortium led by Chinese tech group Tencent, which now owns 20% of UMG, after buying the stake in two consecutive waves that valued UMG at EUR 30 billion ($ 36.35). billion), Vivendi said.
Vivendi said it would hold an extraordinary shareholders’ meeting on March 29 to amend the company’s bylaws and allow for distribution.
In addition, Vivendi will propose at a shareholders meeting on June 22 to pay a dividend of Euro 0.60 per share for fiscal year 2020.
($ 1 = 0.8252 euros)
Reporting by Dominique Vidalon. Editing by Jane Merriman