[ad_1]
Vivendi has secured the support of its shareholders to separate Universal Music Group’s largest business, which will leave the group controlled by billionaire Vincent Bolloré focused on European heritage media.
Tuesday’s vote opens the way for Vivendi to distribute 60% of the world’s largest music label to its shareholders in what is known as its own distribution. The label behind artists like Taylor Swift and Billie Eilish will recently become a € 35 billion independent company, with a listing scheduled for September at Euronext in Amsterdam.
Following the moves, the Chinese-controlled consortium Tencent will own 20% of the new independent UMG, Bolloré’s personal holding company 18 percent and Vivendi 10 percent.
A pure control company controlled by billionaire hedge fund Bill Ackman recently purchased It will distribute a 10% stake in UMG to shareholders after listing.
The vote is a big winner for the Bolloré corporation and industrialist when it sold its two small TV channels to the French group that first joined Vivendi in 2012.
Then, gradually increasing his participation to gain effective control over the group, in 2014 he became chairman of the board. The Bolloré Group, a business leader in transport and logistics in Africa, led sales of assets, which led Vivendi out of video games and telecommunications. a large part of the profits were returned to the shareholders, including himself.
In 2018 he gave Vivendi the role of chair to his son Yannick Bolloré, but he remains the group’s agent. Bolloré’s holding company holds 27% of Vivendi shares and controls 29.73% of the voting rights.
Several such activist investors Bluebell Capital and The third point participated in Vivendin before Tuesday’s vote, the former criticizing the terms of the UMG separation. However, both stopped calling on shareholders to block.
Activists had an upward struggle to frustrate the move or change its terms, as Vivendi had only a simple majority of shareholders to accept.
He also won a separate vote from Vivendi against the resolution, which allows the group to buy up to half of the share capital at a maximum price of € 29 per share after the UMG agreement.
The ISS and Glass Lewis attorney advisory firms recommended voting against the resolution, arguing that it risked not being in the interests of minority shareholders. Bluebell Capital warned that Bolloré could use the tool to increase its stake in Vivendi without bidding, as French securities law would normally require, when a shareholder owns more than 30 percent of the company.
Following the separation of UMG, Vivendi’s remaining businesses will include pay-TV operator Canal Plus, advertising agency Havas and book publisher Editis. In addition, Lagardère has a 29 percent stake in French media and retail groups and a 24 percent stake in Telecom Italia.
[ad_2]
Source link
