Tencent Now Owns 20% Of UMG
• Tencent Holdings Limited announced that a Tencent-led consortium has completed the acquisition of an additional 10% equity stake in Universal Music Group (UMG) from its parent company, Vivendi SE, based on the same enterprise value of EUR30 billion (about $36.3 billion U.S.) for 100% of UMG’s share capital as in the initial 10% acquisition that originally closed in March 2020.
The Consortium comprises the same members as those for the initial 10% investment in UMG, including Tencent Music Entertainment Group and other financial co- investors. Upon the closing of the Transaction, the Consortium’s equity ownership in UMG has now increased 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 the further investment. Vivendi believes the Consortium will notably enable UMG to further develop its activities in Asia.
Following the success of this significant strategic transaction, a UMG IPO listing is planned in early 2022 at the latest. The cash generated by these transactions may be used by Vivendi to reduce its financial debt and to finance acquisitions.
