A jump of more than 30% at the debut on the Amsterdam Stock Exchange (AEX) for Universal Music Group, the American record major spun off from Vivendi which will assign 60% of the shares to its shareholders. Against a reference price set at 18.50 euros, the prices marked an opening price of 25.25 euros with an increase of about 35% and then also touched a maximum of 26.45 euros. The market capitalization, which was 33.5 billion euros on the placement values, rose to 45.5 billion euros. Meanwhile in Paris Vivendi, which retains 10.13% of Umg, loses 65% with respect to the closing price of the previous session and 15% with respect to the post-detachment value of Umg shares.
In a note, the French group explains that, in light of the opening price of 25.25 euros, the distribution in kind of Umg shares to Vivendi shareholders is confirmed in the ratio of one Umg share for each Vivendi share with ex-dividend date set for Tuesday 21 September and settlement of the transaction on 23 September. The number of shares distributed represents 59.87% of the capital and Vivendi will retain 10.13% of Umg. The total value of the distribution is made up of € 5.3 billion, equal to € 4.89 per Vivendi share, a special dividend from the distribution of reserves and an interim dividend of € 22.098 billion (€ 20.36) relating to profits at 30 June as established by management on 14 September.
Revenues of 7.4 billion in 2020, further growth this year
In fiscal 2020 Universal Music achieved revenues of 7.4 billion euros (7.15 in 2019) and a profit of 1.36 billion. In the first half of 2021, turnover increased further and reached 3.8 billion euros (+ 17.3%) and Umg reached several new agreements especially with the social world with partners such as Tik Tok, Snap and Triller. During 2020 Vivendi started the process of spin-off and sale of the asset in three phases: an agreement with a consortium led by Tencent Music Entertainment to sell 20% in two tranches based on an Umg valuation of 30 billion euros, including debt, from which it collected approximately € 5.7 billion; the plan to distribute 60% of Universal’s capital to its shareholders; the sale in the summer of a further 10% to Pershing Square of billionaire Bill Ackman for another 3.5 billion euros.
Very long the list of artists in activity under the record labels of the Universal group (Lady Gaga, Justin Bieber, Eminem) as well as the catalogs of the “sacred monsters” of music published by the Californian house (from the Beatles to Elton John, to the Rolling Stones, Steve Wonder, Queen, Bob Marley and U2). In 2020, the purchase of the rights to Bob Dylan’s catalog.