Shares in Believe Surge as Consortium Makes €1.52 Billion Takeover Bid
Shares in Believe, the French digital music company, experienced a significant boost after a consortium of investors, led by private-equity company EQT and investment firm TCV, announced a takeover bid worth €1.52 billion. The agreement to acquire a majority stake in the company caused Believe’s shares to surge by 19% to €14.72 at 0907 GMT on Tuesday.
The consortium, which also includes Believe’s founder and chief executive Denis Ladegaillerie, has agreed to purchase 71.92% of the company’s shares from existing shareholders. This move follows a halt in trading on Monday, setting the stage for an exciting development.
UBS analysts have lauded the proposal, as the offer price of €15 per share represents a significant 21% premium over the last closing price and an impressive 52% increase over the 120-day average. Their positive evaluation was shared in a note to clients, highlighting the potential value behind this deal.
While the planned tender offer is expected to be filed in the second quarter, it still awaits regulatory approvals. Believe remains optimistic that the consortium will reach the necessary levels to implement a squeeze-out, allowing the company to be taken private. Since its debut on the stock market in 2021, Believe has shown promise and attracted noteworthy attention.
The proposed acquisition suggests a potential turning point for Believe, with investors demonstrating confidence and providing a boost to its market value. As the company waits for the regulatory green light, the music industry and investors are watching attentively to see how this development unfolds and what it means for Believe’s future prospects.
Analyst comment
Positive news:
The consortium’s €1.52 billion takeover bid for Believe resulted in a surge in share prices by 19%. UBS analysts praised the offer, which represents a 21% premium and a 52% increase. Investors and the music industry are hopeful and watching closely for regulatory approval, suggesting positive prospects for Believe’s future.
