French conglomerate Vivendi has officially confirmed that Universal Music Group (UMG) will make its long-awaited debut on the Euronext Amsterdam just one week from today, on Tuesday, September 21st, in addition to disclosing new details about the Universal Music Group IPO.
Vivendi (VIV on the Euronext Paris) just recently confirmed (and detailed) Universal Music Group’s imminent arrival on the Euronext Amsterdam. The French conglomerate’s plans to cash in on UMG – which continued to record double-digit earnings growth during 2021’s first half – have shifted several times over the years, at one point encompassing a proposed 50 percent selloff.
Ultimately, Vivendi opted to sell UMG in tenths ahead of the IPO, with Tencent having purchased 10 percent of the Big Three label towards the end of 2019 (later upping the stake to 20 percent at the same price, €3 billion). More recently, William Ackman’s Pershing Square earlier this month increased its own UMG interest to 10 percent.
Building upon the multibillion-dollar capital influx brought on by the sale of 30 percent of Universal Music, Vivendi indicated during Q1 2021 that it intended to roll out UMG’s IPO by yearend. Execs then moved up the expected date for the stock-market arrival several times – Vivendi shareholders in June “overwhelmingly approved” the overarching plan – before settling on September 21st, 2021.
Now, the Dutch Authority for the Financial Markets (Stichting Autoriteit Financiële Markten) has formally approved Universal Music Group’s prospectus “in connection with the intended admission to trading and official listing of its ordinary shares on Euronext Amsterdam,” Vivendi confirmed today.
Additionally, Vivendi – which will retain 10 percent of Universal Music Group after the IPO – is set to announce shares’ reference price after the Euronext Amsterdam closes on Monday, September 20th. September 21st, aside from marking the date of the stock-market debut itself, will see Vivendi “announce the final distribution ratio [for Vivendi shareholders] – currently expected to be of one UMG share for every eligible Vivendi share held – on the basis of the opening price of the UMG shares.”
Lastly, regarding the IPO’s nuances, Thursday, September 23rd will bring with it a “settlement of the distribution in kind” for those who possess Vivendi shares as of the 22nd, including “delivery and book-entry of UMG shares allocated, as well as payment in cash of fractional entitlements if the distribution ratio has been adjusted.”
Presumably because of the massive windfall that’s set to reach Vivendi shareholders in connection with the UMG IPO, shares in the former entity were worth €32.53 ($38.42 based upon the present exchange rate) at the time of this piece’s writing. The figure marks a more than $7-per-share boost since 2021’s start and a nearly $10-per-share improvement since mid-September of 2020.
Universal Music Group’s Republic Records recently announced the rollout of indie-focused label Imperial Music, and Belgian EDM festival Tomorrowland joined forces with UMG last month to launch a different label yet, Tomorrowland Music.