Vivendi completes sale of 10% UMG stake to Tencent consortium

Vivendi completes sale of 10% UMG stake to Tencent consortium

Despite the Covid-19 epidemic, big deals are still going ahead as planned.

Vivendi has completed the sale of 10% of the share capital of Universal Music Group to a Tencent-led consortium.

The sale has been finalised three months after the signing of the agreement, based on a value of €30 billion for 100% of UMG’s share capital.

The consortium is led by Tencent Holdings and includes Tencent Music Entertainment and other unnamed financial co-investors. 

The deal has been challenged by trade body IMPALA, while the indie sector has also expressed concerns. 

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. 

In a statement, Vivendi said: “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.” 

Vivendi will use the proceeds from these different transactions for share buyback operations and acquisitions.

An initial public offering is currently planned for early 2023 at the latest. 

Warner Music Group's IPO is currently off the table as a result of the Covid-19 epidemic.



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