Tencent Holdings Limited announces today that a Tencent-led consortium has exercised its call option to acquire an additional 10% equity stake in Universal Music Group from its parent company, Vivendi SE, based on the same enterprise value of EUR30 billion for 100% of UMG’s share capital as in the initial acquisition that closed in March 2020.
The Consortium comprises the same members as that for the initial 10% investment in UMG, including Tencent Music Entertainment Group and other financial co-investors. The Transaction is expected to close in the first half of 2021, subject to regulatory approvals. Upon the closing of the Transaction, the Consortium’s equity ownership in UMG will increase to 20%.
Vivendi has enjoyed the presence of Tencent and the other Consortium members as UMG’s investors since March 2020 and is very happy about their decision in exercising the option. Vivendi believes the Consortium will enable UMG to further develop its activities in Asia.
The Consortium is glad to strengthen its long-term strategic partnership with UMG. With the support of Vivendi, Tencent and TME will deepen cooperation with UMG to expand opportunities for artists and bring innovative experiences to music fans, further promoting a vibrant global music entertainment industry.