Believe, an independent music company, has greenlit a majority share acquisition offer from a consortium led by Denis Ladegaillerie, the company’s founder and CEO, at €15 per share.
The decision comes after Warner Music Group’s expressed interest in purchasing Believe, though they ultimately withdrew their bid after conducting due diligence. This limited pool of potential bidders for a company of Believe’s size, stature, and complexity underscores the unique position of the consortium in acquiring the company.
The decision not to compel shareholders to relinquish their stake suggests a willingness to maintain a diverse shareholder base, potentially indicating an advantage in maintaining Believe’s public listing. Alternatively, it may reflect a desire to avoid regulatory scrutiny and facilitate the deal’s completion. The primary objective of the transaction is to provide Believe with a new major shareholder, EQT, to capitalize on opportunities in the music industry’s consolidation phase.
The consortium aims to offer liquidity to long-term investors and allow continued participation in Believe’s growth plan. The move also benefits institutional shareholders by providing the opportunity to participate in future company growth in a liquid public market. Believe will remain publicly listed, providing insights into the European and global music industry’s performance. With all conditions met for the consortium’s offer, pending approval from the French markets regulator, the deal is nearing completion.
Believe’s independent board of directors views the offer positively, providing immediate liquidity to shareholders and aligning with the company’s development plan. Despite the offer being lower than the IPO price, it represents a premium over the traded share price. Independent analysis suggests a range of valuation metrics, with the offer falling within that spectrum. As Believe moves forward under new ownership, supported by well-funded partners, it signals the beginning of a new chapter in its journey.
