Investors flocked into the French media conglomerate Vivendi on Monday after it unveiled plans to spin off the lucrative Universal Music Group, a move long sought by analysts as well as its own top shareholders.

Vivendi owns 80 per cent of UMG, whose artists and catalogue range from the Beatles to Lady Gaga, after recently selling 20 per cent to China’s Tencent group.

In December, Universal shocked many in the industry by announcing a deal to secure the rights to Bob Dylan’s entire back catalogue of songs, reportedly for more than $300 million.

On Saturday, the company said it would study the distribution of 60 per cent of UMG to Vivendi shareholders in order to reduce what it called a “conglomerate discount”.

On Saturday, the company said it would study the distribution of 60% of UMG to Vivendi shareholders

“Vivendi’s leading institutional shareholders have been pressing for a number of years for a split or the distribution of Universal Music Group,” it said.

Vivendi said UMG, which would be listed on the Amsterdam stock market, could be worth at least €30 billion.

The deal, set to be voted on at a shareholder meeting in March, sent Vivendi’s stock rocketing 18 per cent higher to €30.82 in Paris.

The company’s other assets range from movies and TV production to publishing and advertising.

“In 2022, Vivendi should be refocused on all its other main units (mainly Groupe Canal+, Editis and Havas) alongside its minority holdings” including UMG as well as Lagardere, Prisa and Spotify,” the Paris brokerage OddoBHF commented in a note.