A Tencent consortium completed its deal to buy 10% of UMG in March this year. It retained an option running until January 2021 to double its stake, through a second purchase on the same valuation. The Tencent deals put a floor valuation of Euros30 billion on UMG.
Tencent has not issued any regulatory filing concerning the deal and referred Variety’s enquiries to Vivendi.
In a press statement Vivendi said: “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.”
Vivendi says it plans to sell other minority stakes in UMG and to pursue an IPO of the unit by 2022 at the latest. “The cash generated by these transactions may be used by Vivendi to reduce its financial debt and to finance share buybacks and acquisitions,” it added.
– More to follow.