Vivendi investors despatched shares surging by additional than a fifth right after the media large confirmed options to record Universal New music as a €30bn (£26bn) corporation by the close of the year.
The French team, managed by the billionaire Bollore relatives, is poised to income in on a growing trader appetite for new music investments by offloading 60pc of Universal with an Amsterdam listing.
Affirmation of the plan, which is probably to earn shareholder approval at a March 29 assembly, despatched Vivendi shares up 20pc to €31.forty one in Paris, valuing the corporation at €37bn.
The corporation options to keep a 20pc keeping in Universal next the float right after advertising two 10pc stakes to Tencent, the Chinese tech and amusement conglomerate.
In a memo to employees on Saturday, Vivendi main govt Arnaud de Puyfontaine and chairman Yannick Bollore said the choice to open Universal Music’s share funds to Tencent experienced “confirmed its attractiveness with strategic investors”.
“UMG would be in a position to choose advantage of enormously elevated economic overall flexibility to pursue its dynamic growth and its revolutionary position in the new music and amusement marketplace, to the benefit of artists and enthusiasts all over the place,” they added.
Vivendi owns 80pc of Universal alongside investments in French broadcaster Canal+, film and Tv set manufacturing corporation Studiocanal, advertising and marketing agency Havas, book publisher Editis and Gamesloft, the cell game titles maker.