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Vivendi to Sell Up to Half of Universal Music, Rules Out IPO

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Vivendi to Sell Up to Half of Universal Music, Rules Out IPO

Postby MrFredPFL » Tue Jul 31, 2018 10:37 pm

Story :

Vivendi SA plans to sell up to half of Universal Music Group, a unit analysts value at more than $20 billion, to cash in on a surge in streaming that’s overtaken the industry.

The French media conglomerate will sell the stake to one or more “strategic partners” and has ruled out an initial public offering -- long seen by analysts as a likely option -- because it is too complex.

Vivendi will establish a floor price for the stake sale, which will probably go ahead this fall and could be completed within the next 18 months, it said in a statement Monday after share trading ended in Paris, where Vivendi is listed. The stock rose as much as 4.6 percent on Tuesday and was trading 3.7 percent higher to 22.19 euros at 9:02 a.m.

“We will only choose investors who are compatible with Universal Music Group’s current strategy,” Chief Executive Officer Arnaud de Puyfontaine told analysts on a conference call. “The proceeds could be used for a significant share repurchase, reduction of capital and bolt-on acquisitions.”

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