Vivendi has completed the sale of an additional 10% of the share capital of Universal Music Group to the Tencent-led consortium. The deal is based on an enterprise value of €30 billion for UMG.
The sale follows the decision by the consortium – comprising Tencent with the participation of Tencent Music Entertainment and global financial investors – to exercise its option to acquire an additional 10% of UMG last month.
Vivendi confirmed that the Tencent-led consortium now owns 20% of UMG.
In a statement, UMG’s parent company said: “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 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, according to today’s announcement.