Warner Music Group WON’T be making a formal takeover offer for Believe after all.
Warner confirmed last month that it was considering making a EUR €17-per-share-plus offer to buy Believe.
To inform its decision – either way – Warner requested access to “confidential information” about Believe’s finances via a ‘data room’.
Following some back-and-forth between Believe and the AMF – the French financial watchdog – Believe’s board granted WMG access to Believe’s ‘data room’ on March 25.
Warner then had till tomorrow (April 7) to make a takeover offer.
However, today (April 6), WMG has confirmed that it has decided not to pursue an acquisition bid for Believe.
Said WMG in a statement today: “Warner Music Group Corp. (“WMG”) announced today that, after careful consideration, it has decided not to submit a binding offer for Believe.
“WMG thanks the Ad Hoc Committee and Believe’s leadership team for their time and cooperation, and wishes the company every success in future.”
The ‘Ad Hoc Committee’ referenced by WMG constitutes the members of Believe’s board who are not involved with/impacted by an existing takeover plan for the French company by a consortium led by Denis Ladegaillerie.
Ladegaillerie, the founder and CEO of Believe, is a member of that consortium alongside EQT and TCV.
In February, this consortium revealed it had tabled a EUR €15-per-share offer for Believe, valuing the company at around USD $1.6 billion.
The Ladegaillerie consortium said it had already reached private agreements to acquire 71.92% of Believe via ‘Block Acquisitions’ at this price.
Believe’s ‘Ad Hoc Committee’ said today in response to WMG’s decision: “The Ad-Hoc Committee of Believe has taken note of Warner Music Group’s decision not to submit a binding offer for a combination with Believe (“WMG”), as set out in Warner Music Group’s press release of earlier today.
“The Ad-Hoc Committee will review the situation with all interested parties (including the Consortium composed of EQT, TCV and Mr Denis Ladegaillerie, as well as the historical shareholders of Believe) to determine next steps in relation to the possible evolution of the Company’s control and will inform the market accordingly.”Music Business Worldwide
