Vivendi Shares Hikes By 2.7% As UMG Stake Sale Attracts Buyers

By Loudest Team
October 21, 2019

Vivendi, the French media group's share took a hike after it posted higher third-quarter revenue and shared that a potential sale of their stake in Universal Music Group (UMG) was drawing buyer attention. Vivendi's shares were up by 2.7% in early trading, the best performer on France's benchmark CAC-40 index (.FCHI) which was down by 0.7%. "Group trading continues to track well, but we view the major catalyst for share price upside in the short term to be further sell-down of UMG," wrote brokerage Liberum, which kept a "buy" rating on Vivendi. Investors apart from China's Tencent Holdings have also shown interest in buying a minority stake in Universal as it was the leading sales growth driver for Vivendi in the third quarter, Vivendi shared on Thursday. The Paris-based group, controlled by French billionaire Vincent Bollore, strives to cash in on a music industry revival, driven by a growing thirst for subscription and advertising-based streaming services. The company said it was still in talks with Tencent for a sale of up to 20% of Universal, which could value the division at about 30 billion euros ($33.4 billion). Due-diligence and legal documentation on the Universal sale is expected to be completed in the coming weeks, Vivendi added.

Tags UNIVERSAL MUSIC GROUP Tencent International UMG Loudest.in China Vivendi Music Streaming Service Vincent Bollore French Paris

Vivendi Shares Hikes By 2.7% As UMG Stake Sale Attracts Buyers

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