Vivendi has agreed to sell 10 percent of its Universal Music Group (UMG) subsidiary to a consortium led by Chinese group Tencent, in a deal valuing the whole of UMG at EUR 30 billion. Tencent and Vivendi entered talks on the sale in August, just over a year after the plan for a stake disposal was first unveiled. The consortium, which includes Tencent, Tencent Music Entertainment and a number of financial investors, has also negotiated the option to acquire an additional 10 percent stake in UMG by 15 January 2021, at the same price and terms.
This agreement will be shortly complemented by a second deal allowing Tencent Music Entertainment to buy a minority stake in the subsidiary housing UMG operations in Greater China, said Vivendi.
The transaction with the Tencent-led consortium is expected to close by June 2020, subject to regulatory approvals. Vivendi is also beginning negotiations with an unnamed party on the sale of another minority stake in UMG, for a price at least identical to that agreed with Tencent.
