After years of speculation – and investor expectations abound – Universal Music Group (UMG) is expected to start trading on Euronext Amsterdam in less than 24 hours. Here’s everything you need to know about Universal Music Group stocks.

Universal Music Group, a subsidiary of the French conglomerate Vivendi, should arrive on Euronext Amsterdam tomorrow, September 21. In early 2021, Vivendi executives announced their intention to proceed with the IPO (or partial sale) of the long-rumored Universal Music Group, and the proposed date of the offer was postponed several times before the entity headquartered in Paris moved in at the end of September. go out.

The Dutch Securities and Markets Authority (Stichting Autoriteit Financiële Markten) formally approved shares of Universal Music Group for trading last week. (In selecting the Netherlands stock exchange for listing, Vivendi executives said the nation “has been one of UMG’s historic homes.”)

Vivendi then indicated that it would distribute the bulk of the listed capital to its shareholders, and apparently due to this impending windfall, Vivendi stock (VIV on Euronext Paris) is currently trading at $ 36.84 (31, 40 €) piece – close to 52 – of the title. high of the week, which represents a significant increase since the start of 2021.

Universal Music Group share: how much will UMG shares trade at?

About seven days ago, Vivendi announced that it would unveil the “technical reference price of the UMG share” after the close of Euronext Amsterdam today, September 20. But the company had not yet identified said benchmark price at the time of writing – around 7:30 p.m. in the Netherlands and France – and this post will be updated to reflect the information (and any other relevant details) once it is released. ‘they will be available.

When it comes to the potential price of the IPO, it should be remembered that Universal Music Group profits grew 38% year-on-year in the first half of 2021, compared to 27% year-on-year growth. for the entire US recorded music industry during the same period.

Additionally, Warner Music Group (NASDAQ: WMG), which returned to the stock market in 2020, quietly hit a record price of $ 41.59 per share last week. Despite a small dip in the $ 40 range in the interim, WMG shares have risen in value by around 43% so far.

How much will Vivendi shareholders get from Universal Music Group shares?

As mentioned, Vivendi is preparing to carry out a “distribution in kind”, consisting of an exceptional dividend as well as an interim dividend, in a single transaction on Thursday, September 23. Shareholders overwhelmingly voted in favor of the plan in June, and the payout is expected to equal one Universal Music share per Vivendi share held on Wednesday, September 22.

Vivendi will thus distribute up to 60% of the capital and voting rights of UMG, because the Chinese conglomerate Tencent holds 20% of Universal Music Group, Pershing Square of William Ackman 10% and Vivendi intends to keep the remainder around 10%. for at least two years.

After the distribution, Pershing will own approximately 181.32 million UMG shares, compared to twice that amount for Tencent (and its 20 percent stake mentioned above), approximately 183.58 million shares for Vivendi (10, 12 percent), 326.51 million shares (18.01 percent) for entities associated with Bolloré, and 59.56 million shares (3.28%) for the investment bank headquartered in Paris, Société Générale.

The remarkable Universal Music Group got ahead of the IPO

Since the start of 2020, Universal Music Group has taken all kinds of sweeping steps that seem designed to expand its market presence and diversify its revenue streams ahead of the much-anticipated IPO.

At this point in 2021, for example, the Big Three label has entered into an exclusive partnership with Moonbug Entertainment, finalized a “global strategic alliance” with Aerosmith, in partnership with the agency BTS, launched a label with Tomorrowland, launched a label focused on indie. Imperial Music, unveiled an ambitious expansion in China and launched Universal Arabic Music.

2020, for its part, saw UMG enter the content studio space, establish 0207 Def Jam in the UK and partner with Lego, to name just a few notable developments.