The American giant of the recording industry Warner Music Group, which welcomes artists such as Ed Sheeran, Bruno Mars or Cardi B among its various labels, will carry out the sale of 70 million shares, with the option of raise this figure to 80.5 million company titles, than Looking to trade on the Nasdaq under the symbol ‘WMG’, after having postponed in March its plans to go public.
The company, owned by the Access Industries group, founded by Ukrainian-born investor Leonard Blavatnik, has set a price bracket of between $ 23 and $ 26 per share for the sale of its shares, which would raise the amount of the operation to a range of between 1,610 and 1,820 million dollars (1,470 and 1,661 million euros).
However, in the event that the banks subscribing to the operation decide to exercise their right to buy 10.5 million additional shares in the company, the amount of the transaction would reach a maximum of 2,093 million dollars (1,911 million euros) .
In the prospectus of the transaction, registered this Tuesday before the Securities Market Commission (SEC), the third largest record company in the world warns that “it will not receive any amount for the sale of shares carried out by the shareholders in this offer” .
Also, once the transaction is completed, Access will control 440 million Class B shares, representing approximately 99.2% of the combined voting rights, or 429.5 million Class B shares and 99.1% of the voting rights in case the subscribers exercised their purchase option.
Cash dividend payment
“Accordingly, Access will have the ability to control the outcome of matters presented to our shareholders for approval, including the election of directors and the approval of any change in control,” the company said.
On the other hand, Warner Music Group announced that plans to establish a quarterly cash dividend payment of $ 0.12 per share, whose first disbursement would take place next September.
Warner Music Group obtained a net attributable profit of $ 46 million (42 million euros) in the first half of its fiscal year, which ended on March 31, representing a 70% decrease compared to the first six months of its previous year, while the company’s turnover it increased 1.5% to 2,327 million dollars (2,124 million euros).