IS ANOTHER CHUNK OF UMG BEING SOLD?

Vivendi is considering selling between 5% and 10% of Universal Music Group to an American investor prior to listing its IPO on 9/27.

Vivendi made the announcement as part of its governance structure for Universal Music Group.

Vivendi will be distributing 60% of the UMG shares to Vivendi shareholders and will retain 10% of the UMG share capital for a minimum of two years “to remain associated with the development of its subsidiary while benefiting from the protection of EU legislation applicable to parent companies and subsidiaries from different member states.” Tencent owns 20% of UMG.

Vivendi is proposing the formation of a UMG NV board of directors comprised primarily of non-executive members, a majority of whom will be independent, and that neither Vivendi nor Group Bolloré will be represented on the board at this stage. Board members’ term of office will be limited to two business years and the principle of “one share, one vote” will be fully observed.

Universal Music Group’s revenues in the first quarter of 2021 were €1.81b, up 9.4% at constant currency and perimeter.