Vivendi Spin-off (Universal Music) Notes

Vivendi announced that it is exploring spinning off a portion of Universal Music Group in part to reduce Vivendi’s conglomerate discount.
Vivendi recently completed the sale of 10% of Universal to Tencent at a 30 billion euro valuation, increasing Tencent’s ownership stake to 20%.
Vivendi plans to retain 20% of Universal and potentially distribute the remaining 60% of the company to Vivendi shareholders.
Universal Music has been doing very well recently due tp surging popularity of streaming offsetting drops in publishing and advertising revenue due to the pandemic.
Originally, Vivendi had planned to complete the spin-off in 2023 but has accelerated those plans.
Universal Music is the worlds largest record label and represents many famous artists including Taylor Swift and Lady Gaga.
Universal will list in the Netherlands.
Currently, Vivendi has a 35 billion euro market cap.
UBS estimates it will be worth 18.4 billion euros (including its 20% stake in Universal). Vivendi shareholders will also receive their pro rate share of Universal worth ~18 billion euros (60% x 30billion euros). Thus, Vivendi appears to be trading roughly inline with its sum-of-the-parts valuation.