Vivendi investors sent shares surging by more than a fifth after the media giant confirmed plans to list Universal Music as a €30bn (£26bn) company by the end of the year.
The French group, controlled by the billionaire Bollore family, is poised to cash in on a growing investor appetite for music investments by offloading 60pc of Universal with an Amsterdam listing.
Confirmation of the plan, which is likely to win shareholder approval at a March 29 meeting, sent Vivendi shares up 20pc to €31.41 in Paris, valuing the company at €37bn.
The company plans to retain a 20pc holding in Universal following the float after selling two 10pc stakes to Tencent, the Chinese tech and entertainment conglomerate.
In a memo to staff on Saturday, Vivendi chief executive Arnaud de Puyfontaine and chairman Yannick Bollore said the decision to open Universal Music’s share capital to Tencent had “confirmed its attractiveness with strategic investors”.
“UMG would be in a position to take advantage of greatly increased financial flexibility to pursue its dynamic growth and its pioneering role in the music and entertainment industry, to the benefit of artists and fans everywhere,” they added.
Vivendi owns 80pc of Universal alongside investments in French broadcaster Canal+, film and TV production company Studiocanal, advertising agency Havas, book publisher Editis and Gamesloft, the mobile games maker.