PARIS (Reuters) – Vivendi announced on Tuesday that it is considering selling an additional 10% of Universal Music Group (UMG) to an American investor or a public offering of 5% to 10% of the capital. From nugget, the world’s largest music brand.
The French group, which has already sold 20% of UMG to a consortium led by Chinese Tencent, is currently planning to distribute 60% of the subsidiary’s capital to its shareholders with a goal of an IPO in Amsterdam scheduled for September. 27 at the latest.
“Before distributing 60% of UMG’s capital to Vivendi shareholders, the group analyzes the desirability of selling 10% of UMG shares to an American investor or making a public offer of at least 5% and up to 10% from,” he said in a statement Tuesday.
The group controlled by Vincent Bollori, however, maintains its desire to retain 10% of the UMG “for at least two years”.
Once these transactions are complete, neither Vivendi nor the Bolloré Group intend to be represented on the UMG Board of Directors, which will primarily be comprised of independent members, the press release reads.
Additionally, the “toxic pill” is not intended to prevent a possible subsequent offering on Universal.
In documents recently released for her public meeting next month, Vivendi estimated UMG’s € 33 billion rating, which includes in her catalog artists such as Lady Gaga or Taylor Swift.
The brand contributes more than half of Vivendi’s operating profit.
Universal saw its EBIT rise nearly 36% to € 322 million in the first quarter, with revenue up 9.4% to € 1.8 billion. (Sudip Car Gupta, Matteo Rosmin, Nicholas Delam and Bertrand Bossi, edited by Blandin Hennault)