French media giant “Vivendi” has announced that the capital of its most valuable asset, Universal Music Group, is 33 billion euros, which is more than the market value of the parent company.
In documents released before Vivendi ‘s general meeting in June, the group revealed details of Universal’ s planned list, through which the group, controlled by billionaire Vincent Bolor, distributes 60% of Universal ‘s equity to current shareholders.
The transaction aims to get the most out of Universal, the world’s largest record label, as the music industry recovers from its long decline thanks to streaming platforms such as Spotify.
Universal’s estimate of 33 billion euros was given by PwC and EY. This means that 60 percent will be allocated to Vivendi shareholders, worth 19.8 billion euros.
Universal’s parent company has a market value of 32 billion euros, according to Refinitiv.
At the end of the IPO process, Universal’s three largest shareholders will be Vivendi (20%), led by the consortium Tencent (20%) and Bolor (16%).
In its documents, Vivendi states that “Universal” attracts the interest of potential investors and can sell a 20% stake in the “strategic partner” before the distribution of shares in “Universal”. She also added that she intends to keep at least 10% of the company’s stake for a long time.
About 1.1 billion shares of Universal will be distributed among Vivendi shareholders according to the documents.
In February, the French conglomerate revealed that it planned to distribute 60% of Universal’s equity to its current shareholders through the Amsterdam Stock Exchange, ending years of questions about whether Bolor wanted to list assets with more than half of the group’s operating profit.
In addition, Vivendi has set a September 27 deadline for listing shares on the stock exchange in the Dutch capital.