Vivendi: the Tencent-led Consortium Has Completed the Exercise of Its Call Option and Now Owns 20% of UMG's share capital
January 29 2021 - 6:15AM
Dow Jones News
Regulatory News:
Vivendi (Paris:VIV) announced today that it has completed the
sale of an additional 10% of the share capital of Universal Music
Group (UMG) to a Tencent-led consortium, based on an enterprise
value of EUR30 billion for 100% of UMG's share capital.
The closing and payment of this transaction follows the decision
by the Consortium, led by Tencent (00700.HK) with the participation
of Tencent Music Entertainment (NYSE: TME) and certain global
financial investors, to exercise its option to acquire an
additional 10% of UMG on December 17, 2020.
As a result, the Tencent-led consortium now owns 20% of UMG.
Vivendi has enjoyed the presence of Tencent and its co-investors
at UMG's share capital since March 2020 and is very happy that the
Consortium decided to take a larger participation. This will
notably 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.
Following the success of this significant strategic transaction,
a UMG listing is planned in early 2022 at the latest.
The cash generated by these transactions may be used by Vivendi
to reduce its financial debt and to finance 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
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CONTACT:
Vivendi
SOURCE: Vivendi
Copyright Business Wire 2021
(END) Dow Jones Newswires
January 29, 2021 06:00 ET (11:00 GMT)
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