Vivendi’s promoters have revived Universal Music’s plans to win Bolloré

Vivendi has won the support of its shareholders to move its biggest business, Universal Music Group, into another company, which will leave the band under the leadership of billionaire Vincent Bolloré.

Vote Tuesday provides an opportunity for Vivendi to deliver 60% of the world’s largest music to its shareholders known for its distribution. The brand of artists like Taylor Swift and Billie Eilish will be a stand-alone company that could be priced at € 35bn, with lists planned for September at Euronext in Amsterdam.

Following the move, China’s Tencent-led partnership will own 20% of independent UMG, the Bolloré-owned company will have 18% and Vivendi 10%.

An empty company run by hedge fund billionaire Bill Ackman as well recently purchased 10% share to UMG and will distribute to shareholders after list.

The vote was a resounding success for businessman and industrialist Bolloré who first joined Vivendi in 2012 when he sold the French club two small-scale exchanges.

He then gradually set his price to lead the group, becoming chairman of the board in 2014. The businessman, who runs Bolloré Group in Africa, runs a number of businesses that remove Vivendi from video games and telecoms. with them, including him.

In 2018 he handed over the Vivendi seat to his son Yannick Bolloré, but remains the leader of the team. The company owned by Bolloré owns 27% of Vivendi shares, and controls 29.73% of the voting rights.

Several advertisers such as Bluebell Capital and Secret 3 took up arms in Vivendi before voting Tuesday, when the former criticized the split from UMG. However, all of them had stopped inviting participants to participate.

Opponents have faced a rising battle to block the move or change its approach as Vivendi only needs multiple shareholders to approve it.

Vivendi also won an election, which the contestants objected to, giving the club the opportunity to buy up to half of its shares at a price of € 29 per share after the UMG agreement.

The proxy consultants firm ISS and Glass Lewis have voted against the ruling, saying it puts them at risk without the involvement of a minority stakeholder. Bluebell Capital had warned that Bolloré could use this tool to expand its share of Vivendi without paying the fine as required by French security laws where the shareholder owns more than 30% of the company.

Following the separation from UMG, the remaining Vivendi businesses have included payers for TV Canal Plus, Havas advertising agency, and publisher Editis. It also owns 29% stake in French media and the Lagardère sales team, as well as 24% Telecom Italia.