Vivendi unveils spin-out plan for Universal Music

Nieuws Algemeen Wereld 15 FEB 2021
Vivendi unveils spin-out plan for Universal Music

Vivendi has announced a proposal to spin out Universal Music Group (UMG), its main revenue-generating business, with shareholders set to vote on the project on 29 March. The plan follows the sale of a 20 percent stake in UMG to a consortium led by Tencent, based on an enterprise value of EUR 30 billion for 100 percent of UMG share capital. Vivendi’s management board is now considering a distribution of 60 percent of UMG share capital to shareholders by the end of the year, in an operation that would take the form of an exceptional distribution ("special dividend.”)

If approved, the project would leave Vivendi with a 20 percent stake in UMG, which would become an independent company listed on the Euronext Amsterdam stock exchange. The transaction has received an initial favourable response from the Tencent-led consortium taking part in the planned listing.

Vivendi's management board will also propose an ordinary dividend of EUR 0.60 per share for the 2020 fiscal year at the shareholder meeting scheduled on 22 June.


Categories:

Algemeen

Companies:

Universal Music,  Vivendi

Regions:

Wereld

Tags:

Shareholders & subsidiaries, Digital Music, M&A buyouts & divestments

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