Universal valued at $ 40 billion, more than Vivendi parent documents

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The Vivendi logo is pictured at the main entrance to the headquarters of the Entertainment-to-Telecom conglomerate in Paris on March 14, 2014. REUTERS / Charles Platiau

(This May 12 story corrects to read 1.1 billion, paragraph 8)

French media giant Vivendi (VIV.PA) said on Wednesday that the equity of its most prized asset, Universal Music Group, was worth 33 billion euros ($ 40 billion), more than the market value of mother Society.

In documents published ahead of Vivendi’s general meeting scheduled for June, the group went into the details of the listing prepared for Universal, which will see the group controlled by billionaire Vincent Bolloré distribute 60% of the capital of Universal. to its current shareholders.

The deal aims to extract the most value from Universal, the world’s largest music label and home to singers such as Lady Gaga and Taylor Swift, as the music industry rebounds from a long downturn on revenue streaming, pulled by the music platforms Spotify (SPOT .N) and similar.

Universal’s 33 billion euro valuation was determined by accounting firms PwC and EY. This means that the 60% stake distributed to Vivendi shareholders represents € 19.8 billion.

Universal’s parent company has a market value of 32 billion euros, according to data from Refinitiv.

At the end of the IPO process, the three main shareholders of Universal would be Vivendi (20%), the consortium led by Tencent (20%) and Bolloré (16%).

In its documents, Vivendi specifies that Universal is attracting the interest of potential investors and that it could sell part of its 20% stake to a “strategic partner” before the distribution of Universal’s shares. He added that his intention was to keep at least 10% stake in the company for a long time.

According to the documents, approximately 1.1 billion Universal shares will be distributed to Vivendi shareholders. By dividing the valuation corresponding to 60% of Universal by the exact number of shares, we obtain a price per Universal share of 18.2 euros.

The French conglomerate presented in February its intention to distribute 60% of the capital of Universal to its current shareholders via a listing in Amsterdam, ending years of questions about Bolloré’s desire to list the asset, including operating results. represent more than half of the whole group. Read more

Vivendi also presented the timetable for Universal’s initial public offering (IPO), setting the deadline of September 27 for the listing of the shares in Amsterdam.

The Paris-based group also released Universal’s first quarter financial results. Universal generated earnings before interest and taxes (EBIT) of 322 million euros for the first three months of the year, compared to 248 million euros the previous year.

(1 USD = 0.8243 euros)

Our standards: Thomson Reuters Trust Principles.

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