Warner Music Group WILL NOT make a formal buyout offer for Believe after all.
Warner confirmed last month that it was considering making an offer to purchase Believe at more than 17 euros per share.
To inform his decision – in either case – Warner requested access to “confidential information” about Believe’s finances via a “data room”.
After a few back and forths between Believe and the AMF – the French financial watchdog – Believe’s board of directors granted WMG access to Believe’s “data room” on March 25.
Warner then had until tomorrow (April 7) to make a buyout offer.
However, today (April 6) WMG confirmed that it had decided not pursue an acquisition offer for Believe.
WMG said in a statement today: “Warner Music Group Corp. (“WMG”) announced today that after careful consideration it has decided not to submit a firm offer for Believe.
“WMG thanks the ad hoc committee and the Believe management team for their time and cooperation, and wishes the company every success in the future.”
The “ad hoc committee” referenced by WMG constitutes the members of the board of directors of Believe who are not involved/impacted by an existing takeover project of the French company by a consortium led by Denis Ladegaillerie.
Ladegaillerie, founder and CEO of Believe, is a member of this consortium alongside EQT and TCV.
In February, this consortium revealed that it had filed a Offer of €15 per share on Believevaluing the company at approximately $1.6 billion.
The Ladegaillerie consortium said it had already entered into private agreements to acquire 71.92% from Believe via ‘Block Acquisitions’ at this price.
Believe’s “ad hoc committee” said today in response to WMG’s decision: “The Believe Ad Hoc Committee has noted Warner Music Group’s decision not to submit a binding offer for a combination with Believe (“WMG”), as noted in Warner Music Group’s press release issued earlier in the day.
“The Ad-Hoc Committee will examine 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 the next steps in relation to the possible evolution of control of the Company and will inform the market accordingly.Music Business Worldwide