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French media conglomerate Vivendi is considering the sale of an additional 10 percent stake in Universal Music Group, the label home of the likes of Taylor Swift and Lady Gaga, to a U.S. investor.
Vivendi, which is planning an initial public offering of the music major in Amsterdam by late September, previously sold a 20 percent stake in it to a consortium led by Chinese online giant Tencent. In the IPO, it will distribute 60 percent.
“The group is analyzing the opportunity of selling 10 percent of UMG shares to an American investor or initiating a public offering (IPO) of at least 5 percent and up to 10 percent of UMG shares,” Vivendi said on Tuesday. “Furthermore, Vivendi will retain 10 percent of the UMG share capital for a minimum period of two years in order to remain associated with the development of its subsidiary” while also “benefiting from the protection of EU legislation applicable to parent companies and subsidiaries from different member states.”
Vivendi also said on Tuesday that UMG would not introduce a so-called “poison pill,” a protection against hostile takeover bids, when it becomes a separately listed company.
UMG’s first-quarter revenue rose 9.4 percent. That, along with “strict cost control,” left earnings interest and taxes up 36 percent.
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