The Financial Markets Authority (AMF) has approved the takeover offer for the company Believe, a benchmark in independent music, by a consortium led by its own boss.
The Financial Markets Authority (AMF) gave the green light on Thursday to the takeover offer for Believe (support for independent musicians and labels) by a consortium associating its boss with investment funds.
This notice launches the takeover process, which will open on Monday and close on June 21, announced a spokesperson for the consortium. Its offer is set at 15 euros per share, valuing the company at 1.46 billion euros. “Under these conditions, having taken note of the objectives and intentions of the initiator, in particular concerning the absence of implementation of a compulsory withdrawal at the end of the offer, the Financial Markets Authority declared the project compliant simplified public purchase offer”, writes the AMF in its decision.
“The launch of this offer constitutes a new major step in the operation that we initiated with the Consortium to make Believe the world reference for independent music by giving it all the means to seize the growth opportunities that arise thanks to the digitalization of the music market”, reacted the general director and founder of Believe, Denis Ladegaillerie.
The consortium already owns 81% of Believe
The consortium bringing together Mr. Ladegaillerie and the TCV and EQT funds announced agreements in February to increase the capital to 71.9%, which took place at the end of April. He now owns more than 81% of Believe. After having considered requesting a withdrawal from the Stock Exchange at the end of the operation, the consortium preferred not to go that far.
Believe’s board of directors considered that this proposal was “in the interest of the company, its employees and its shareholders”, whether or not they wish to remain so, according to an April 19 press release. The AMF had insisted that the company consult its board of directors and that it provide a reasoned opinion, which Believe initially abstained from.
Warner Music Group had expressed interest
Founded in 2005, the company went public in 2021. It offers “new, established or leading artists” its “digital expertise” to grow their audience, independent of the large groups that control most of the global market music.
In this matter, the sector giant Warner Music Group had for a time expressed its interest, considering an offer at 17 euros per share at the end of March, before giving up at the beginning of April. This proposed takeover by a record major raised concerns. Believe “embodies a model of success and resistance to the worrying phenomenon of consolidation” in the music industry, underlined the Union of Independent French Phonographic Producers.
