Vivendi: divestment of 10% of UMG to Tencent consortium
(CercleFinance.com) - Vivendi has announced that the consortium led by Tencent has decided to exercise its option to acquire an additional 10% of Universal Music Group (UMG) on 17 December, based an enterprise value of 30 billion euros for 100% of UMG's share capital.
The sale and payment will occur in the first half of 2021, subject to regulatory approvals. Vivendi is expected to use the cash proceeds to reduce its financial debt and finance share buybacks and acquisitions.
Following the success of this strategic agreement, Vivendi is continuing with its plan to sell additional minority interests in UMG, with the assistance of several mandated banks. A stockmarket listing is planned by 2022 at the latest.
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