Believe to go private following consortium's takeover bid

Music distribution and artist services company Believe has entered into an agreement for a significant acquisition, where its founder Denis Ladegaillerie, alongside private equity firms EQT and TCV, will acquire a majority stake. The consortium will purchase 71.92% of Believe's share capital and 77.42% of its voting rights.

Following these acquisitions, the consortium intends to launch a mandatory tender offer for the remaining shares at €15 per share. This offer represents a 43.8% premium over the volume-weighted average share price for the 30 trading days preceding the announcement. The transaction values Believe at approximately €1.52 billion.

Believe's board of directors has unanimously welcomed the proposed transaction, pending the receipt of a fairness opinion from an independent expert and other regulatory approvals. An ad hoc committee comprising three independent directors has been established to oversee the process and prepare a recommendation regarding the offer. The tender offer is expected to be filed in the second quarter of 2024.

Ladegaillerie stated that Believe has significant opportunities to consolidate the independent music market and that this can be better achieved as a private entity. EQT's representative expressed enthusiasm for partnering with the company to support its continued growth.