Following the announcement, Vivendi made in August 2019 of entering preliminary negotiations with Tencent Holdings Limited (Tencent) for an investment of 10% of the share capital of UMG, it has come to light that Vivendi and Tencent led consortium, have agreed upon the negotiated percentile of the stake at UMG.

This agreement comes with a provision for the purchase of the 10% stake at UMG by Tencent with the participation of TME (Tencent Music Entertainment) and definite global financial investors. It is based on an enterprise value of €30 billion for 100% of UMG’s share capital. Assumably, €3 billion for 10%.

The agreement will be accompanied by a second agreement. It allows Tencent Music Entertainment to acquire a minority share capital of UMG’s subsidiary that will operate in Greater China.

Impact of the agreement