Now that Vivendi shareholders have approved spinning off 60% of Universal Music Group, the world’s largest music major can become a publicly listed company by a targeted date of Sept. 21, the French media conglomerate announced on Tuesday.
At the company’s annual general shareholder’s meeting, 99.9% of shareholders in attendance voted to approve the distribution of 60% of UMG to Vivendi shareholders. The meeting was virtually attended by shareholders that owned 69% of Vivendi shares.
The company said that the vote demonstrated shareholders’ “full support for the recommended strategic approach and the options chosen by the Management Board to implement this transaction.”
Once public, the shares will be listed on Euronext Amsterdam.
The recent deal to sell 10% of the company to Bill Ackman’s Pershing Square Tontine Holdings gave UMG a 33 billion euro ($39.4 billion) valuation; including debt it has an enterprise value of 35 billion euros ($41.6 billion).
In response to written questions from shareholders, Vivendi said PSTH was a “strategic choice to support UMG over the long term alongside Tencent and its co-investors, given the quality of the long-term shareholder base of this SPAC, which includes many sovereign wealth funds.”
The company added that the transaction, if completed, would bring “€3.3 billion of additional cash to Vivendi, providing it with significant liquidity for future investments.”
Meanwhile, Vivendi shareholders approved the payment of an ordinary dividend of 0.60 euro per share with respect to fiscal year 2020, which will be paid June 25, 2021.