by Amy-Jo Crowley, Pablo Mayo Cerqueiro and Mathieu Rosemain
LONDON (Reuters) – The main shareholders of the digital record company Believe, which notably represents the rapper Jul, have considered delisting the company in recent weeks, people familiar with the matter told Reuters.
These shareholders, including the group’s managing director and founder Denis Ladegaillerie and the American investment company TCV, have canvassed the interest of private equity firms to study an offer for Believe, less than three years after its debut in stock market, these sources said on condition of anonymity.
Swedish private equity group EQT began discussions with Believe shareholders, before ending them last month, said one of the people familiar with the matter. Negotiations between Permira and shareholders also took place, but did not materialize, a second source said.
While there is no indication that the operation will be successful, talks are still underway, said a third source close to the matter.
The market capitalization of Believe amounts to 948 million euros and the group’s shares were worth 9.74 euros at the close on Thursday, around half less than its introductory price in June 2021.
TCV declined to make any comment, Denis Ladegaillerie did not respond to requests from Reuters and a spokesperson for Believe had no immediate comment.
Founded in 2005 and based in Paris, Believe advises independent artists and music labels, particularly regarding the distribution and promotion of their music.
Over the past year, several such buyouts have taken place in Europe, involving listed companies that have struggled to establish themselves on the stock markets.
In August, EQT offered to buy back the outstanding shares of Suse, a German software group in which it held a 79% stake, half the value at which EQT took the company public in April 2021.
On the Paris Stock Exchange, around 09:05 GMT, Believe shares rose 1.13% to 9.85 euros after jumping nearly 6% in early trading to 10.30 euros.
(Reporting by Amy-Jo Crowley and Pablo Mayo Cerqueiro in London with Mathieu Rosemain in Paris; by Camille Raynaud, edited by Kate Entringer)
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