PARIS (Reuters) – Believe announced on Monday that it had received from a consortium an offer to purchase all of its outstanding shares at a price of 15 euros per share, as part of a transaction valuing the group French digital music at around 1.52 billion euros.
Reuters reported in January that Believe was considering a buyout offer.
As part of this offer, the consortium, composed of the American investment company TCV, the Swedish private equity group EQT and Denis Ladegaillerie, chairman and CEO of Believe, would initially take 71.92% of Believe, then would launch an offer on the balance of the Parisian group, he specified.
According to this consortium, Believe’s board of directors supports its proposal, which represents a premium of 21% over the music group’s Friday closing price and a premium of 43.8% and 52.2% respectively over at volume-weighted average prices over 30 and 120 days.
The public purchase offer should be filed with the Financial Markets Authority (AMF) during the second quarter of this year.
Believe confirmed its annual outlook for organic growth of 14% and an adjusted EBITDA margin of slightly above 5.5%.
On the Paris Stock Exchange, trading of Believe was suspended around 09:30 GMT although the stock was up 9.7% before opening.
(Written by Dominique Vidalon; French version Zhifan Liu and Claude Chendjou, edited by Kate Entringer)
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