Vivendi, Tencent Enter Talks for 10% Stake in UMG
August 06 2019 - 2:40AM
Dow Jones News
By Anthony Shevlin
Vivendi SA (VIV.FR) said Tuesday that it entered into
preliminary negotiations with Tencent Holdings Ltd. (0700.HK) for a
strategic investment in Universal Music Group.
The French media company said the investment amounts to 10% of
the share capital of UMG.
Vivendi said UMG has a preliminary equity valuation of 30
billion euros ($33.50 billion) on a fully-diluted basis.
Furthermore, Tencent would have a one-year call option to
acquire an additional 10% stake at the same price and terms.
"Vivendi is keen to explore enhanced cooperation which could
help UMG capture growth opportunities offered by the digitalization
and the opening of new markets," the company said, adding that it
targets value creation for both itself and Tencent via the
partnership.
The transaction is subject to due diligence and Vivendi plans to
continue the process for the sale of an additional minority stake
in UMG to other potential partners.
Write to Anthony Shevlin at anthony.shevlin@dowjones.com;
@anthony_shevlin
(END) Dow Jones Newswires
August 06, 2019 02:25 ET (06:25 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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