Vivendi has won the support of its shareholders to turn its largest business, Universal Music Group, into a separate company that will emerge from the group controlled by billionaire Vincent Boley, focusing on Europe’s heritage media.
Tuesday’s vote paves the way for Vivendi to distribute 60 percent of the world’s largest music label to its shareholders, known as a distribution. Artists such as Taylor Swift and Billy Elish will become an independent company, recently valued at 35 billion euros, and the list is scheduled for September at Euronext in Amsterdam.
Following the transfers, the Chinese-controlled consortium Tencent will own 20 percent of the newly independent UMG, Bolloré’s private holding company 18 percent and Vivendi 10 percent.
An open-ended audit firm controlled by hedge fund billionaire Bill Ackman recently purchased UMG’s 10% stake հետո will be distributed to its shareholders after listing.
The vote was a major victory for corporate striker-maker All, who first joined Vivendi in 2012, when he sold two small TV channels to the French group in exchange for shares.
He then gradually raised his stake to establish effective control over the group, becoming chairman of the board in 2014. The businessman, whose Bolloré Group operates transportation and logistics in Africa, led the sale of a number of assets that pushed Vivendi out of video games and telecommunications. Most of the proceeds went back to shareholders, including himself.
In 2018, he handed over the role of Vivendi’s chair to his son, Yannick Bolore, but remains a driving force in the group. Bolloré Holding owns 27% of Vivendi, controlling 29.73% of the voting rights.
Several activist investors, such as: Bluebell Capital: և: Third point He was betting on Vivendi ahead of Tuesday’s vote, the first to criticize UMG’s terms of separation. However, both stopped calling on shareholders to block it.
Activists were fighting hard to thwart the move or change its terms, as Vivendi only needed a simple majority of shareholders to approve it.
Vivendi also won a separate vote on a resolution opposed by activists that would allow the group to buy half of its equity after the UMG deal for up to a maximum of € 29.
ISS և Glass Lewis-trusted consulting firms have advised against voting against the resolution, arguing that it risks not being in the interests of minority shareholders. Bluebell Capital has warned that Bolloré could use the measure to increase its stake in Vivendi without a bid, as required by French securities law when a shareholder owns more than 30% of the company.
Following the UMG split, the rest of Vivendi’s businesses will include pay-TV Canal Plus, Havas advertising agency գ Editis book publisher. It also has a 29% stake in the French media Lag retail group Lagardère and a 24% stake in Telecom Italia.