By Mauro Orru

Vivendi SE said Friday that it is selling an additional 10% stake in its subsidiary Universal Music Group to a consortium led by Tencent Holdings Ltd.

The European media giant said the agreement is based on an enterprise value of 30 billion euros ($36.81 billion) for 100% of UMG's share capital, meaning the 10% stake sale is for EUR3 billion.

The announcement comes about a year after Vivendi announced the first 10% stake sale to the consortium, which includes Tencent Music Entertainment Group, for the same price.

Vivendi said cash from the two stake sales could be employed to cut financial debt, and finance share buybacks and acquisitions.

The company also said it is planning additional minority interests sales in UMG, for which a listing is planned at the latest in 2022.

Closing and payment should take place during the first half of 2021.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

December 18, 2020 02:28 ET (07:28 GMT)

Copyright (c) 2020 Dow Jones & Company, Inc.
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