Tencent Holdings Limited has exercised its call option to add 10% more stake in Universal Music Group (UMG) from its parent company, Vivendi. The acquisition is based on an enterprise valuation of 30 billion euros for 100% of UMC’s share capital.
- Vivendi believes the acquisition will enable UMG to further develop its activities in Asia.
- The deal transaction closes in the first half of 2021, and Tencent Holdings equity ownership in UMG will increase to 20%
- Tencent Group closed a deal for 10% in UMG in March 2020
Tencent’s stock is currently declining. 0700: HKG is down 0.51%