© Reuters. FILE PHOTO: French media big Vivendi’s brand is pictured in Paris, France, August 12, 2020. REUTERS/Charles Platiau/File Photograph
By Mathieu Rosemain
PARIS (Reuters) – French billionaire Vincent Bollore’s family-owned group has pledged to media big Vivendi (OTC:) that it’s going to not request an exemption to file a young supply on Vivendi’s shares if it crosses the 30% threshold in capital possession or voting rights, Vivendi stated.
Vivendi’s June 22 annual shareholders’ assembly may have a decision giving Vivendi the potential for shopping for again and cancelling as much as 50% of its capital, prompting some buyers to query the rationale of such a proposition.
Bollore is Vivendi’s prime shareholder with a 27% stake within the firm. The tycoon successfully controls the Paris-based group.
Bollore’s group stated in a letter to Vivendi that it may additionally promote a few of its Vivendi shares if have been to take part within the share capital discount by tendering its shares.
Glass Lewis and ISS, the world’s two largest proxy advisers, have beneficial buyers vote towards the share buy-back and cancellation resolutions, saying it was not in shareholders’ finest pursuits.
Glass Lewis cited considerations expressed by activist fund Bluebell that Bollore may use this instrument to extend his stake within the media group with out making a young supply.
Vivendi is within the technique of spinning off its Common Music Group (UMG) division, which is the music label behind artists resembling Woman Gaga and Taylor Swift.
Glass Lewis and ISS have beneficial Vivendi shareholders vote in favour of the spin-off plans, which might see Common being listed in Amsterdam. The deal contains the distribution of 60% of Common’s shares to Vivendi shareholders.
Common is valued at roughly 35 billion euros ($43 billion), together with debt, based on Vivendi.
($1 = 0.8218 euros)
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