Authorization

Vivendi mulling sale of up to half of Universal Music

Vivendi is considering selling up to half of the shares in Universal Music Group, in a move which could provide the French media giant with a cash bonanza of more than €10bn (?9bn).
The company said it was planning to sell the shares to one or more strategic partners "in order to extract the highest value", and said it would soon engage banks to help identify these partners. 
Vivendi did not say how much it was planning to sell the shares for, instead saying it would "establish a floor price for the entry of partners into UMG’s share capital".
However, the sale is likely to provide Vivendi with a substantial war chest for M&A activity. Earlier this month, Liberum valued the whole of Universal Music Group at €21bn.
Vivendi said it was in exclusive talks over buying publisher Editis, which has an enterprise value of €900m, and, during an analyst call, Vivendi signalled it was also looking at bolt-on acquisitions.
It follows months of speculation about a possible upcoming initial public offering of Universal Music Group, which is the biggest music company in the world, having signed artists such as Taylor Swift and Kendrick Lamar to its labels. 
In May, Vivendi had said it was weighing up an IPO as one of its options, but on Monday said it had now ruled this out "due to its complexity".
The move to sell the shares, which Vivendi said could be completed within the next 18 months, is the first major strategic move taken by new chairman Yannick Bollore, who took up the post in April, replacing his father Vincent Bollore.
Vivendi mulling sale of up to half of Universal Music

Vincent Bollore had served as Vivendi chairman up until April this year

Credit:
ZAKARIA ABDELKAFI/AFP
The shift at the top of the company came just a week before Vincent Bollore was placed under a formal investigation by French police over allegations of corruption and influencing elections in Africa, which he denied.
In the first half of 2018, Vivendi's revenues jumped 18pc to €6.5bn, an increase it said was attributable to a strong performance from Universal Music Group and television channel Canal+ Group. Its earnings before interest and tax were up 36pc year on year in the six month period. 
See also:
Leave a comment
News
  • Latest
  • Read
  • Commented
Calendar Content
«    Октябрь 2018    »
ПнВтСрЧтПтСбВс
1234567
891011121314
15161718192021
22232425262728
293031