(Updated with reaction from Believe)
Warner Music Group WMG.O has decided not to submit an offer for the French digital music group Believe BLV.PA, says a press release from the American major published on Saturday.
“Warner Music Group today announces that it has decided, after careful consideration, not to submit a binding offer for Believe,” WMG said.
A month ago, the American group confirmed that it had approached the French company at the end of February to begin discussions with a view to a potential merger.
On March 25, Believe invited Warner to “submit a binding, unconditional and fully financed offer for Believe” no later than April 7, 2024.
Believe also announced on February 12 that it had received a purchase offer from a consortium for all of its outstanding shares at a price of 15 euros per share, as part of a transaction valuing it at approximately 1.52 billion euros.
This consortium is made up of the American investment company TCV, the Swedish private equity group EQT
EQTAB.ST and CEO of Believe Denis Ladegaillerie.
In a press release published on its site, Believe said it had taken note of Warner’s decision, which proposed a minimum of 17 euros per share.
“The ad-hoc Committee will examine the situation with all interested parties (including the consortium (…)) in order to determine the next steps relating to the possible evolution of the control of the company, and will inform the market accordingly” , added Believe.
The French group’s share price was 16.50 euros on Friday at the close of the Paris Stock Exchange.
(Jean-Stéphane Brosse, with Utkarsh Shetti in Bangalore)