Vivendi has confirmed the sale of 10 per cent of Universal Music Group (UMG) to a consortium led by Chinese internet giant Tencent Holdings.

Vivendi, which is the parent company of UMG and owner of See Tickets, Digitick and Paylogic, yesterday (Tuesday) announced the completion of the deal, marking three months to the day since the contractual agreement of the acquisition was announced.

The €3bn (£2.7bn/$3.7bn) deal values UMG at an implied €30bn, with Tencent retaining an option to double its shareholding on the same terms by January 15, 2021.

Vivendi said: “Now that this very significant strategic operation has been completed, Vivendi will pursue the possible sale of additional minority interests in UMG, assisted by several banks which it has mandated.

“Vivendi is very happy with the arrival of the Tencent-led consortium. It will enable UMG to further develop in the Asian market.”

The firm also noted that an IPO of UMG is planned for early 2023 at the latest.

Vivendi said that it “intends to use the proceeds from these different transactions for substantial share buyback operations and acquisitions”.

A separate agreement was also agreed that enables Tencent Music Entertainment, owned by Tencent, to acquire a minority share capital of UMG’s subsidiary housing its Greater China operations.

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