Universal Music Group set for IPO in the next 3 years
On the shut of final 12 months, MBW broke the information that Common Music Group had inked definitive paperwork to promote 10% of its firm to a consortium led by Tencent Holdings Ltd for $3.3bn – a stockholding that would this 12 months rise to 20%.
We additionally advised you that UMG mum or dad Vivendi remained open to different events shopping for additional stakes in its music firm.
In the present day (February 13), we bought an replace from Paris-based Vivendi – and it’s very large information.
In response to a just-issued press launched from Vivendi, its Supervisory Board has been “knowledgeable of ongoing negotiations concerning the attainable sale of further minority pursuits [on top of Tencent’s], which negotiation engagement, primarily based on a minimal valuation of €30 billion, was introduced on December 31, 2019.”
“Eight banks have been mandated by Vivendi to help it on this matter. An preliminary public providing is at present deliberate for early 2023 on the newest.”
After which the headline revelation: “Eight banks have been mandated by Vivendi to help it on this matter. An preliminary public providing is at present deliberate for early 2023 on the newest.”
Did you catch it?
It seems that Vivendi plans to spin out a portion of Common Music Group on the inventory market throughout the subsequent three years. (it seems probably that this portion of the corporate will probably be separate from the 10%-20% of UMG owned by the Tencent consortium, to be clear.)
That information follows final week’s headline that Warner Music Group intends to enter an IPO, with Entry Industries sustaining majority voting shares within the firm.
See under from Vivendi’s This autumn 2019 presentation for additional affirmation.
Common Music Group, led by CEO and Chairman Sir Lucian Grainge (pictured), turned over $8.04bn (€7.16bn) final 12 months throughout recorded music, publishing and different actions.
This quantity was up by 18.9% year-on-year, or 14.0% at fixed foreign money.Music Enterprise Worldwide