Vivendi has closed the sale of 10% of its subsidiary Common Music Group to a consortium led by the Chinese language powerhouse Tencent. The deal, which was signed three months in the past, values UMG for €30 billion.
As a part of the settlement, the consortium – which incorporates Tencent Music Leisure, in addition to different monetary co-investors — has the choice to purchase one other stake of as much as 10% on the similar value by January 15 of 2021.
“Vivendi could be very pleased with the arrival of the Tencent-led consortium. It’s going to allow UMG to additional develop within the Asian market,” mentioned the French media conglom.
The corporate, which additionally owns Canal Plus Group, mentioned it is going to now search to promote extra minority pursuits in UMG with the assistance of a number of banks which it has mandated.
As beforehand reported, UMG is planning an IPO by early 2023. Vivendi mentioned it “intends on utilizing the proceeds from these offers for substantial share buyback operations and acquisitions.”
When Vivendi introduced plans to promote as much as 50% of UMG in 2018, it took many business gamers and traders without warning as a consequence of the truth that UMG is Vivendi’s topped jewel and has been bolstering its monetary outcomes yr after yr. Helmed by chairman/CEO Lucian Grainge since 2011, UMG is by far the world’s largest music firm.
Vivendi noticed its annual revenues bounce by 14% to €15.eight billion ($17 billion) in 2019, pushed by UMG whose revenues reached greater than $7.7 billion, up 14% due to a 21.5% surge in streaming income. UMG’s recorded music greatest sellers for 2019 included new releases from Billie Eilish, Publish Malone, Taylor Swift and Ariana Grande.