By Andrea Figueras


A consortium of investors including EQT reaffirmed its commitment to acquire France's Believe SA after Warner Music Group approached the digital-music company with a proposal of at least 1.65 billion euros ($1.81 billion).

The consortium--including private-equity company EQT, venture investor TCV and Believe's co-founder and Chief Executive Denis Ladegaillerie--said Friday that it fully negotiated and signed binding agreements with shareholders representing 71.92% of Believe's share capital.

It also intends to file a mandatory tender offer to acquire the remaining shares for EUR15 each.

Believe didn't respond to a request for comment when contacted by Dow Jones Newswires.

The consortium's response comes after U.S. music publisher Warner Music Group said Thursday that it was interested in a potential acquisition valuing Believe at EUR17 a share, and confirmed it made an approach in February to start talks.

Warner Music's proposal topped the one submitted by the consortium in February, which valued the French company at EUR1.52 billion. Warner Music said its offer could be all-cash, but didn't rule out a share-based component, adding that it was awaiting due-diligence information to submit a formal proposal.

At 1045 GMT, shares in Believe fell 1.7% to EUR16.02. The stock closed up 5% on Thursday after news of Warner Music's interest emerged, as its proposal represented a premium of at least 9.5% to Believe's closing price on Wednesday.

In response, the consortium said it is best positioned to support Believe in its development.

Believe was founded in 2005 with the purpose of serving local artists and labels at each stage of their development in the digital ecosystem. The company made its stock-market debut in 2021.


Write to Andrea Figueras at andrea.figueras@wsj.com


(END) Dow Jones Newswires

03-08-24 0612ET