During the first exchanges on the Amsterdam Stock Exchange, the title of Universal traded at 25.5 euros, 38% above its initial price, set at 18.50 euros. Vivendi now only holds 10.13% of UMG’s capital.
First successful stock market steps for Universal Music Group (UMG). During the first exchanges for its entry on the Amsterdam Stock Exchange, the stock of the Vivendi subsidiary soared to 25.52 euros around 07:30 GMT, or nearly 38% above its initial price, set at 18.50 euros Monday evening.
An expected success for Vivendi’s goose that lays golden eggs and which immediately affected the stock market price of the French holding company. Vivendi’s stock thus plunged by more than 15% during the first exchanges on the Paris Stock Exchange.
Vivendi now only holds 10.13% of UMG’s capital, according to a company statement released on Tuesday. The group led by Vincent Bolloré specified that the total number of UMG shares distributed represented 59.87% of the capital of the major and confirmed the parity of distribution of shares between UMG and Vivendi.
The major, world number one in the sector with a market share of more than 40%, has something to delight investors with a promise of 20% growth in its profits. Universal, owner of the famous Abbey Road studios, which housed the Beatles and Lady Gaga, as well as Kanye West and Amy Winehouse, of EMI Records (Justin Bieber, Keith Richards, Metallica) and Capitol Records (Katy Perry) generated in 2020 some 7.4 billion euros in turnover. That is almost 46% of the group’s income.
But Vivendi has chosen to refocus on publishing, advertising and the media and therefore continue its withdrawal from its jewel Universal. Last August, the group sold 7.1% of the major music industry to Pershing Square Holdings, William Ackman’s hedge fund, for $ 2.8 billion. The transaction concluded with Pershing Square Holdings succeeded the one finalized with Tencent, the Chinese having bought back 20% of the shares of UMG for 6 billion euros.
Meeting in June at a general meeting, Vivendi shareholders then almost unanimously approved the split of Universal and the distribution of 60% of the music label’s shares, offering a victory to the Breton businessman, the main shareholder. , facing several activist funds opposed to the project. This is part of a favorable context: the turnover of the major jumped 17% in the first half to reach $ 3.8 billion.