Vivendi Universal sells 10% of its music for 3.5 billion euros

L'opération valorise Universal Music Group quelque 35 milliards d'euros.

The deal is over. As announced earlier this month, Vivendi will sell 10% of the capital of its subsidiary Universal Music Group (UMG) for about $ 3.5 billion. The surgery was confirmed this Sunday evening. The buyer is SPAC Pershing Square Dontine Holdings, the investment vehicle of American billionaire Bill Ackman.

The French media and entertainment team have already sold 20% of UMG’s capital to Chinese technology company Tencent for a company value of $ 30 billion. So the transaction announced on Sunday is a little more favorable to Vivendi, as it is valued at $ 35 billion by Lady Gaga’s record company, UMG.

Divide and public offering

Vivendi will thus recover ில்லியன் 3 billion (after tax), which could be used for future acquisitions, share repurchases or debt reductions.

The group, controlled by 27% by Vincent Pollo, now plans to spin UMG by distributing 60% of its capital to its current shareholders. The listing for the Universal Music Stock Exchange is scheduled for the end of September in Amsterdam. The transaction is expected to be approved by Vivendi’s general meeting on Tuesday, June 22nd.

“After the entry of 20% of the capital of the Tencent Group-led consortium UMG, the arrival of large US investors brings a new demonstration of success and the global appeal of UMG,” Vivendi said in a statement.

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