Smash hit Universal surges to over $50 bln in Amsterdam debut

Pershing Square Holdings

21/09/2021 12:02

(Updates with share moves, trading volume)
    ** Shares in Universal Music Group (UMG)  UMG.AS  surge 35%
on their Amsterdam debut, bringing the market value of the
world's largest record label to around 45 billion euros ($55.10
billion), following a spin-off by French media giant Vivendi
 VIV.PA  
    ** They were trading at around 25 euros in early afternoon,
racing well ahead of IPO reference price of 18.50 euros
 urn:newsml:reuters.com:*:nL1N2QM1FH
    ** By 1030 GMT, close to half a billion euros worth of
shares had traded in Amsterdam, making it the most swapped stock
on the exchange and accounting for more than half of its trading
volume 
    ** Shares in Vivendi, trading ex-UMG, has seen its share
price drop to 11 euros from 31 euro on Monday
    ** "The immediate reaction is very strong," said AlphaValue
analyst Jean-Michel Salvador, adding that it seemed likely the
group's main investors would hold on to their stakes as
Universal enjoys growth trends across the industry
    ** The label, which represents musicians ranging from Taylor
Swift and Lady Gaga to Elton John and the Rolling Stones, is
benefiting from an industry rebound underpinned by booming
streaming revenues and a recent surge in sales of vinyl records
and CDs  urn:newsml:reuters.com:*:nL1N2QG0O5
    ** Bernstein's Matti Littunen says opening performance
suggests a 25% premium to only listed peer Warner Music Group
 WMG.O  on NTM EV/EBITDA multiple
    ** "No sign of a European discount here," Littunen adds,
saying strong returns on paper mean there is less immediate
pressure for a dual U.S. listing
    ** Vivendi will retain 10% of Universal after the
transaction, while a Tencent-led  0700.HK  consortium will hold
20% and U.S. investor Bill Ackman's Pershing Square Holdings
 PSH.AS  10% 

($1 = 0.8530 euros)

 (Reporting by Sarah Morland)
 ((sarah.morland@tr.com
mailto:sarah.morland@thomsonreuters.com))