Consortium proposes to acquire Believe at €15 per share
A consortium including investment firms TCV, EQT, and CEO Denis Ladegaillerie has proposed to acquire all outstanding shares of Believe at a price of €15 per share. The offer represents a premium of over 21% to the recent closing price.
Paris – A consortium formed by TCV and EQT funds, along with Believe's Chairman and CEO Denis Ladegaillerie, has submitted a proposal to acquire all outstanding shares of the digital music distribution company Believe at €15 per share. The offer price signifies a premium of approximately 21% over the last closing price before the announcement.
This offer also represents substantial premiums compared to previous trading volumes, with increases of 43.8% and 52.2% over the 30-day and 120-day volume-weighted average share prices, respectively. The proposed transaction, which includes the acquisition of significant stakes from existing shareholders and contributions from Ladegaillerie, would bring the consortium's ownership to approximately 71.92% of the share capital before the formal tender offer.
Believe's Board of Directors has unanimously welcomed the proposal, pending a thorough review. An ad-hoc committee comprising three independent directors has been established to evaluate the offer, supported by an independent expert appointed to assess the financial fairness. The company has engaged Citigroup Global Markets Europe AG and Gide Loyrette Nouel as financial and legal advisors.
The tender offer is expected to be filed with the French Financial Markets Authority (AMF) in the second quarter of 2024. If successful, the consortium aims to take Believe private. The company also reaffirmed its 2023 financial outlook, anticipating organic growth of approximately 19% and an adjusted EBITDA margin slightly above 5.5%.