The sale Trust for a corporation led by its founder and CEO, Denis Ladegailleriewas given the green light by the company's board of directors, paving the way for the group to take majority control of the company.
The news came about two weeks later Warner Music GroupIts notice that it is no longer care in making a competitive bid for the France-based digital music company.
The Ladegaillerie-led group said the board's decision meant all conditions had been met for its majority acquisition of Believe to go ahead. Believe expects the group to make a formal offer “in the coming days”.
Believe's board of directors – which does not include those who are involved in the consortium or have agreed to sell their shares to the consortium – voted unanimously to give a “favorable opinion” on the offer. proposal, as it is “in the interest of the company, its shareholders and employees,” the company said in a statement released on Friday (April 19).
“This offer is also in line with the strategy pursued by the board of directors, while benefiting from the support of major shareholders in line with the company's development plans and their ability to support the company in the future. the next phase of market growth and consolidation,” the company said in the report. declare.
“This will enable the company to strengthen its position to capture market opportunities driven by the digital transformation of artists worldwide in the music and music publishing sectors , with the ambition to build a global company in the independent music sector that relies on technology to adapt to the digital age.” world.”
The board's decision was based in part on the recommendation of a “Special Committee,” comprised of three board members with no connection to the sale, which concluded that the sale was “consistent with the company strategy and will have no material impact on hiring.”
The sale of Believe shares to the corporation at EUR €15 per share up to one premium 38.2% compared to the average price of the stock over the last 20 trading days, 52.2% premium compared to the previous 120 trading days and 50% The Ad-Hoc Committee noted that the premium was higher than the stock price last December, when rumors of the sale began to circulate.
However, the committee also noted that the sale price was lower than the company's share price €19.50 at the time of the company's IPO in 2021.
Believe's shares closed at €14.90 on the Euronext Paris exchange on Thursday.
“This will enable the company to strengthen its position to capture market opportunities driven by the digital transformation of artists worldwide in the music and music publishing sectors …”
Trust
Last February, a group of investors, including Ladegaillerie, a Swedish private equity firm EQT and funds controlled by the investment company TCVbe made public with a takeover bid give 100% faith in €15 per sharecompany valuation at 1.523 billion euros (1.64 billion USD).
Not long after, Warner Music Group (WMG) disclosure they were also interested in bidding for Believe, with the higher bid being €17 per shareThis will value the company at 1.7263 billion euros ($1.872 billion).
After some back and forth between Believe and the Autorité des Marchés Financiers (AMF), France's securities regulator, the Paris-based company granted WMG access to confidential financial information through a secure “data room.”
After reviewing Believe's data, WMG announced on April 6 that it will not bid for faith.
Believe’s Ad-Hoc Committee noted in its decision that “no competing offers” for Believe “have materialized.”
However, the group's ownership of Believe may not reach the 100% mark as Ladegaillerie and the rest of the group had initially hoped.
On April 12, the potential buyers said they would not seek the removal of minority shareholders, meaning that minority shareholders who “wish to do so” would be able to continue investing in Believe, the company said in a statement Friday.
Agreed to buy back Believe shareholders Luxco BD, ventech And XAngethe corporation will have the least control 71.92% Believe's shares, when Ladegaillerie's existing shares in the company are included.
The company will continue to be listed on the Euronext Paris exchange.Music business worldwide
