Seems like Common Music Group goes public this 12 months – in Amsterdam.
UMG father or mother Vivendi has confirmed it’s inspecting a proposal to spin 60% of the music firm out from the French firm’s company possession, and for UMG to begin buying and selling on the Euronext Amsterdam inventory change by the top of 2021.
Arnaud de Puyfontaine and Yannick Bolloré (Vivendi’s CEO and the Chairman of its Supervisory Board, respectively), knowledgeable their colleagues of the information this morning (February 13).
A brand new Vivendi investor launch reveals additional particulars, noting that following the current sale of UMG fairness to a Tencent-led consortium for a €30 billion enterprise worth, Vivendi has seen “pursuits expressed by different buyers at doubtlessly greater costs” for stakes in Common.
Vivendi confirms that its administration board is now contemplating “a distribution of 60% of UMG’s share capital to Vivendi shareholders” through a “particular dividend”.
Vivendi provides: “The itemizing of the shares of UMG, a holding firm presently being included within the Netherlands, could be utilized for on the regulated market of Euronext NV in Amsterdam, in a rustic which has been considered one of UMG’s historic properties. The transaction has acquired an preliminary favorable response from the Tencent-led consortium with whom the deliberate itemizing might be examined.”
A consortium led by Tencent Holdings final month closed the acquisition of a second 10% chunk of UMG fairness, taking its whole holding to twenty%.
That acquisition gave Common Music Group an enterprise valuation of €30 billion (presently value round $36 billion).
A notice from Exane BNPP right now estimates that the 60% share disposal to Vivendi shareholders would see a post-IPO Common Music Group roughly owned 20% by the Tencent consortium, 20% by Vivendi, 16% immediately by the Bolloré group (which owns round 27% of Vivendi) and 44% by different Vivendi shareholders.
Sir Lucian Grainge, Chairman & CEO of Common Music Group, knowledgeable his world staff of developments right now through an inner memo, obtained by MBW.
“I couldn’t be prouder: not solely is that this a validation of our technique, our groups, and our unprecedented file of success, it’s a pure evolution within the storied historical past of our firm that may allow our entrepreneurial and artistic tradition to proceed to soar.”
Sir Lucian Grainge, Common Music Group
Writes Grainge: “I couldn’t be prouder: not solely is that this a validation of our technique, our groups, and our unprecedented file of success, it’s a pure evolution within the storied historical past of our firm that may allow our entrepreneurial and artistic tradition to proceed to soar.
“We’ll proceed to drive in the direction of our strategic targets – full steam forward. We’ll stay dedicated to our artists and songwriters. And we’ll proceed to innovate and assist lead the music group in the direction of an unbelievable subsequent chapter.
“Briefly, as I’ve stated many occasions, we’ll keep true to our mission: harnessing our collective abilities and assets to form tradition via the facility of music. When, in collaboration with artists, we come collectively as an organization, what we are able to obtain is actually outstanding.”
The notice from Bolloré and de Puyfontaine, which you’ll learn in full beneath, confirms: “The potential distribution of 60% of UMG’s share capital might be topic to a Vivendi Extraordinary Shareholders’ Assembly on March 29, 2021. The plan, if it involves fruition, would mark a brand new section within the excellent relationship between our corporations which has been established over a few years.”
It provides: “UMG could be able to benefit from tremendously elevated monetary flexibility to pursue its dynamic progress and its pioneering function within the music and leisure business, to the advantage of artists and followers all over the place.”
Pricey pals and colleagues,
We have now some nice information to share with you.
In the present day we introduced Vivendi’s intention to look at the distribution of 60% of the Common Music Group share capital and its subsequent itemizing earlier than finish 2021.
This plan is the results of the joint efforts in recent times by the Vivendi and the Common Music Group, beneath the management of Sir Lucian Grainge, to additional the corporate’s place because the music business’s undisputed chief.
UMG has strengthened its worldwide management by specializing in its inventive DNA and uniqueness: expertise, each new and established, each native and world. On the identical time, UMG has succeeded in main the huge transformation in shopper adoption of streaming and subscription.
Just lately the profitable opening of UMG’s share capital to a global consortium led by Tencent has confirmed its attractiveness with strategic buyers.
The potential distribution of 60% of UMG’s share capital might be topic to a Vivendi Extraordinary Shareholders’ Assembly on March 29, 2021. The plan, if it involves fruition, would mark a brand new section within the excellent relationship between our corporations which has been established over a few years.
UMG could be able to benefit from tremendously elevated monetary flexibility to pursue its dynamic progress and its pioneering function within the music and leisure business, to the advantage of artists and followers all over the place.
This new chapter in Vivendi’s journey would give the Group a singular alternative to speed up its improvement as a world chief in content material, media and communications, selling open-minded and multi-cultural creativity.
We will depend on further monetary assets with a strategic roadmap primarily based on a number of pillars: the creation of high-quality content material and world distribution capabilities; the event into new leisure codecs and high-potential markets; an rising degree of integration between our companies and actions.
We’re very excited by the prospects on the street forward. We are going to proceed, due to all of you, to advertise what makes our group distinctive. Our enterprise mannequin may be very strong. The range of our companies and the creativity of our abilities are second to none.
Thanks for what you could have achieved thus far. We all know we are able to depend on you for the following chapters.
Yannick Bolloré and Arnaud de PuyfontaineMusic Enterprise Worldwide