Bollore to withhold genuine grip on Universal after $36 billion itemizing

PARIS (Reuters) - French filthy rich particular person Vincent Bollore will protect genuine influence over Universal Tune Community as a most well-known shareholder following its planned 30-billion-euro ($36 billion) tear-off on the stock market by media conglomerate Vivendi .

Vivendi is within the hunt for to extract the most value from its crown-jewel asset, the sector’s largest song mark and home to singers corresponding to Girl Gaga and Taylor Swift, as the song substitute rebounds from a protracted downturn thanks to streaming revenues.

The French conglomerate outlined plans on the weekend to distribute 60% of Universal’s capital to its most up-to-date shareholders by technique of a itemizing in Amsterdam.

The records precipitated a rally in Vivendi’s shares in early Paris trading on Monday, valuing the crew shut to 31 billion euros ($38 billion).

Vivendi’s market value is about the identical as the accomplishing value that it placed on Universal sooner than it sold two blocs of 10% within the song mark to a consortium led by Chinese crew Tencent, in March 2020 and January this year.

“The total transaction is aimed in direction of releasing up the hidden value of Vivendi, whose market value has been injurious to that of Universal’s itself not too long within the past,” a provide shut the subject stated.

At the tip of this IPO project, which have to be permitted by a shareholders assembly on the tip of March, Universal’s three largest shareholders would be Vivendi (20%), the Tencent-led consortium (20%) and Bollore (16%).

As Bollore controls Vivendi by technique of a 27% stake, this fashion directly and in a roundabout arrangement he'll administration some 36% of Universal.

Vivendi had previously stated that it would checklist Universal by the initiate of 2023 on the most modern.

FILE PHOTO: Vincent Bollore, Chairman of the Supervisory Board of media crew Vivendi, attends the firm's shareholders assembly in Paris, France, April 19, 2018. REUTERS/Charles Platiau/File Photo

Nevertheless a few institutional buyers pressed the conglomerate to switch extra rapid, to have interaction revenue of financial markets flush with low-mark cash, prompting Bollore to speed the timetable, primarily based fully totally on the identical provide.

Bollore chose Amsterdam over diverse world financial centres, corresponding to Contemporary York, to checklist the firm, because it is “just” and extra lovely to skill buyers from China, including Tencent, which had been centered by the earlier U.S. administration, the provision shut to the subject added.

MUSIC STREAMING BOOM

Universal’s capital distribution will have interaction the form of a definite dividend, below the plans to checklist the song mark, which competes with the likes of Warner Tune Community and Sony Tune Leisure.

Various analysts welcomed the proposals, citing buyers’ unabated appetite for bellow providers after the itemizing of Warner, and the revival of the song substitute on the help of streaming revenues.

“Here's what many shareholders salvage wished and is a more in-depth consequence than Vivendi selling a few of its UMG stake in an IPO,” JPMorgan stated in a account for, including that it estimated Universal’s value became about 40 billion euros.

After a 15-year downturn, the song substitute has rebounded within the previous 5 years, with world recorded song revenues rising by 8.2 percent in 2019 to $20.2 billion, primarily based fully totally on the most modern annual file by file substitute substitute crew IFPI.

Streaming revenues salvage represented the vast majority of the growth over the pas few years, pushing the fragment of streaming revenues to 56% in 2019, driven by 341 million paid subscribers.

Tune streaming Spotify, the market chief, and rival Apple Tune are the utilizing forces on the help of that construction.

($1 = 0.8244 euros)

Reporting by Mathieu Rosemain and Sudip Kar-Gupta; Bettering by Jason Neely and Pravin Char

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