Vivendi: Closing of the Agreement With Tencent-led Consortium Regarding UMG and the Evolution of Its Capital
March 31 2020 - 5:40AM
Dow Jones News
Regulatory News:
Vivendi (Paris:VIV) announced today that it has completed the
sale of 10% of the share capital of Universal Music Group (UMG) to
a Tencent-led consortium, three months after the signing of the
agreement on December 31, 2019, based on an enterprise value of
EUR30 billion for 100% of UMG's share capital.
The consortium is led by Tencent (00700.HK) and includes Tencent
Music Entertainment (NYSE: TME) and other financial co-investors.
The consortium 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.
Vivendi is very happy with the arrival of the Tencent-led
consortium. It will enable UMG to further develop in the Asian
market.
Now that this very significant strategic operation has been
completed, Vivendi will pursue the possible sale of additional
minority interests in UMG, assisted by several banks which it has
mandated.
An initial public offering 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.
Important Disclaimers
Cautionary Note Regarding Forward-Looking Statements. This press
release contains forward-looking statements with respect Vivendi's
financial condition, results of operations, business, strategy,
plans and outlook. Although Vivendi believes that such
forward-looking statements are based on reasonable assumptions,
such statements are not guarantees of future performance. Actual
results may differ materially from the forward-looking statements
as a result of a number of risks and uncertainties, many of which
are outside our control, including, but not limited to, the risks
related to antitrust and other regulatory approvals as well as any
other approvals which may be required in connection with certain
transactions and the risks described in the documents of the Group
filed by Vivendi with the Autorité des marchés financiers (the
French securities regulator), which are also available in English
on Vivendi's website (www.vivendi.com). Investors and security
holders may obtain a free copy of documents filed by Vivendi with
the Autorité des marchés financiers at www.amf-france.org, or
directly from Vivendi. Accordingly, we caution readers against
relying on such forward-looking statements. These forward-looking
statements are made as of the date of this press release. Vivendi
disclaims any intention or obligation to provide, update or revise
any forward-looking statements, whether as a result of new
information, future events or otherwise.
In addition to the foregoing, each of Vivendi's businesses are
closely monitoring the current and potential effects of the recent
COVID-19 (coronavirus) outbreak. Currently, the majority of the
impacts on Vivendi's businesses have been minimal due to their
predominately digital nature. However, the outbreak is likely to
continue to have an impact globally, and it is uncertain at this
point for how long and how severely this crisis will impact our
business activities and financial results.
Unsponsored ADRs. Vivendi does not sponsor any American
Depositary Receipt (ADR) facility in respect of its shares. Any ADR
facility currently in existence is "unsponsored" and has no ties
whatsoever to Vivendi. Vivendi disclaims any liability in respect
of any such facility.
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/20200331005318/en/
CONTACT:
Vivendi
SOURCE: Vivendi
Copyright Business Wire 2020
(END) Dow Jones Newswires
March 31, 2020 05:25 ET (09:25 GMT)
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