Consortium Including Tencent Music Entertainment Group Proposed to Acquire 10% Equity Interests in Universal Music Group

Tencent Music Entertainment Group (NYSE: TME) today announced that the Company, through one of its wholly-owned subsidiaries, proposes to join a consortium (the "Consortium") led by Tencent Holdings Limited ("THL") to acquire a 10% equity stake in Universal Mu

Benzinga · 12/31/2019 10:39

Tencent Music Entertainment Group (NYSE: TME) today announced that the Company, through one of its wholly-owned subsidiaries, proposes to join a consortium (the "Consortium") led by Tencent Holdings Limited ("THL") to acquire a 10% equity stake in Universal Music Group ("UMG") from its parent company, Vivendi S.A. (OTC: VIVHY), at an enterprise value of EUR30B. TME proposed to invest up to a 10% equity interest in the Consortium. The Consortium will also have the option to purchase an additional 10% equity stake in UMG at the same enterprise value as in the Transaction pursuant to the terms of the transaction documents.

The Transaction is subject to regulatory approvals and other customary closing conditions, and is expected to close by the first half of 2020. Prior to the closing of the Transaction, TME and UMG also intend to enter into a second agreement that grants TME an option to acquire a minority equity stake in UMG's Greater China business.

TME is thrilled to join the consortium in investing in UMG, and intends to further deepen the cooperation with UMG and drive the development of music entertainment market in China.