Vivendi investors sent shares surging by additional than a fifth right after the media big verified options to record Common New music as a €30bn (£26bn) firm by the finish of the year.
The French team, controlled by the billionaire Bollore household, is poised to money in on a growing trader urge for food for audio investments by offloading 60pc of Common with an Amsterdam listing.
Confirmation of the approach, which is possible to acquire shareholder approval at a March 29 conference, sent Vivendi shares up 20pc to €31.forty one in Paris, valuing the firm at €37bn.
The firm options to keep a 20pc holding in Common next the float right after promoting two 10pc stakes to Tencent, the Chinese tech and enjoyment conglomerate.
In a memo to workers on Saturday, Vivendi chief govt Arnaud de Puyfontaine and chairman Yannick Bollore claimed the final decision to open Common Music’s share cash to Tencent had “verified its attractiveness with strategic traders”.
“UMG would be in a position to choose gain of considerably enhanced economic adaptability to pursue its dynamic advancement and its revolutionary role in the audio and enjoyment industry, to the profit of artists and enthusiasts in all places,” they added.
Vivendi owns 80pc of Common together with investments in French broadcaster Canal+, film and Tv generation firm Studiocanal, marketing agency Havas, reserve publisher Editis and Gamesloft, the mobile online games maker.