Vivendi investors despatched shares surging by more than a fifth soon after the media big verified strategies to record Common Music as a €30bn (£26bn) firm by the conclusion of the year.
The French group, controlled by the billionaire Bollore spouse and children, is poised to funds in on a growing trader urge for food for music investments by offloading 60pc of Common with an Amsterdam listing.
Confirmation of the program, which is probable to get shareholder acceptance at a March 29 conference, despatched Vivendi shares up 20pc to €31.41 in Paris, valuing the firm at €37bn.
The firm strategies to retain a 20pc keeping in Common subsequent the float soon after marketing two 10pc stakes to Tencent, the Chinese tech and leisure conglomerate.
In a memo to team on Saturday, Vivendi main executive Arnaud de Puyfontaine and chairman Yannick Bollore reported the decision to open up Common Music’s share capital to Tencent experienced “verified its attractiveness with strategic buyers”.
“UMG would be in a posture to take gain of significantly elevated economic flexibility to pursue its dynamic development and its groundbreaking part in the music and leisure industry, to the profit of artists and fans everywhere you go,” they included.
Vivendi owns 80pc of Common together with investments in French broadcaster Canal+, movie and Tv set creation firm Studiocanal, promoting agency Havas, book publisher Editis and Gamesloft, the mobile video games maker.