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Vivendi In Preliminary Talks With Tencent For UMG Stake Sale - Quick Facts

Content, media and communications group Vivendi SA (VIV.L,VIVEF.PK) announced Tuesday that it has entered into preliminary negotiations with Tencent Holdings Limited regarding a stake in Universal Music Group or UMG.

The talks are for a strategic investment totaling 10% of the share capital of UMG at a preliminary equity valuation of 30 billion euros for 100% of UMG on a fully-diluted basis.

In addition, Tencent would have a one-year call option to acquire an additional 10% at the same price and terms.

The deal is subject to due diligence on UMG and finalization of legal documentation.

Further, the companies are concurrently considering areas of strategic commercial cooperation. Together with Tencent, Vivendi hopes to improve the promotion of UMG's artists, as well as identify and promote new talents in new markets.

Along with these talks, Vivendi said it plans to continue the process for the sale of an additional minority stake in UMG to other potential partners.

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