It follows the signing of an agreement on December 31, 2019 that valued 100% of UMG’s share capital at €30 billion.
The consortium is led by Tencent and includes Tencent Music Entertainment and other financial co-investors. It has the option to acquire, on the same valuation basis, an additional amount of up to 10% of UMG’s share capital until January 15, 2021.
This transaction is complemented by a separate agreement which enables Tencent Music Entertainment to acquire a minority share capital of UMG’s subsidiary housing its Greater China operations.
In a statement, Vivendi says that it is very happy with the arrival of the Tencent-led consortium. It will enable UMG to further develop in the Asian market.
It adds that this very significant strategic operation has been completed, it will pursue the possible sale of additional minority interests in UMG, assisted by several banks which it has mandated.
An IPO is currently planned for early 2023 at the latest.
Vivendi intends to use the proceeds from these different transactions for substantial share buyback operations and acquisitions.