The plan to list Universal represents part of a process launched by Vivendi's top shareholder French billionaire Vincent Bollore to cash in on the music industry's revival.

"Vivendi's leading institutional shareholders have been pressing for a number of years for a split or the distribution of Universal Music Group (UMG) to reduce Vivendi's conglomerate discount," Vivendi said in a statement.

The French conglomerate said the distribution would take the form of a special dividend.

UMG, a holding company currently being incorporated in the Netherlands, will apply for a listing on Euronext in Amsterdam.

The transaction has received a favorable response from the consortium led by China's tech group Tencent, which now controls 20% of UMG, having bought the stake in two successive waves that valued UMG at 30 billion euros ($36.35 billion), Vivendi said.

Vivendi said it would hold an extraordinary shareholders meeting on March 29 to modify the company's by-laws and make the distribution possible.

In addition, Vivendi will propose to distribute a 0.60 euros per share dividend for its 2020 fiscal year at a shareholders meeting scheduled for June 22.

($1 = 0.8252 euros)

(Reporting by Dominique Vidalon. Editing by Jane Merriman)

By Dominique Vidalon