Vivendi: The Tencent-led Consortium Is Acquiring an Additional 10% of UMG's Share Capital
December 18 2020 - 2:50AM
Dow Jones News
Regulatory News:
Vivendi (Paris:VIV) announced today that the Tencent-led
Consortium decided on December 17, 2020, to exercise its option to
acquire an additional 10% of Universal Music Group based on an
enterprise value of EUR30 billion for 100% of UMG's share capital.
Closing and payment will take place during the first semester of
2021, subject to regulatory approvals.
Following the agreement signed on December 31, 2019, the
Consortium, led by Tencent (00700.HK) with the participation of
Tencent Music Entertainment (NYSE: TME) and certain global
financial investors, acquired 10% of the share capital of UMG on
March 31, 2020, with the option to acquire an additional amount of
up to 10% of UMG's share capital on the same valuation basis until
January 15, 2021.
Vivendi has enjoyed the presence of Tencent and its co-investors
at UMG's share capital since March and is very happy the Consortium
has decided to exercise its option. They will enable UMG to further
develop its activities in Asia.
Tencent and the Consortium members are delighted to support
UMG's growth through this additional investment. Together with
Vivendi, Tencent and Tencent Music Entertainment will continue to
work to broaden artist opportunities and to enrich experiences for
music fans, further promoting a thriving music and entertainment
industry.
This transaction is complemented by a separate agreement signed
on March 31, 2020, allowing Tencent Music Entertainment to acquire
a minority stake in the capital of the UMG subsidiary owning its
Greater China operations.
Following the success of this significant strategic transaction,
Vivendi is pursuing its plan to sell additional minority interests
in UMG with the assistance of several mandated banks. A listing is
planned at the latest in 2022.
The cash generated by these transactions may be used by Vivendi
to reduce its financial debt and to finance share buybacks and
acquisitions.
About Vivendi
Since 2014, Vivendi has been focused on building a world-class
content, media and communications group with European roots. In
content creation, Vivendi owns powerful, complementary assets in
music (Universal Music Group), movies and series (Canal+ Group),
publishing (Editis) and mobile games (Gameloft) which are the most
popular forms of entertainment content in the world today. In the
distribution market, Vivendi has acquired the Dailymotion platform
and repositioned it to create a new digital showcase for its
content. The Group has also joined forces with several telecom
operators and platforms to maximize the reach of its distribution
networks. In communications, through Havas. the Group possesses
unique creative expertise in promoting free content and producing
short formats, which are increasingly viewed on mobile devices. In
addition, through Vivendi Village, the Group explores new forms of
business in live entertainment, franchises and ticketing that are
complementary to its core activities. Vivendi's various businesses
cohesively work together as an integrated industrial group to
create greater value. www.vivendi.com
View source version on businesswire.com:
https://www.businesswire.com/news/home/20201217006247/en/
CONTACT:
Vivendi
SOURCE: Vivendi
Copyright Business Wire 2020
(END) Dow Jones Newswires
December 18, 2020 02:35 ET (07:35 GMT)
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