A consortium led by Denis Ladegaillerie, founder and CEO of Imagine, has secured over 85% of the corporate’s shares in its takeover bid.
This advances the consortium’s effort to take Imagine non-public.
In an replace to the market on Friday (June 140, the consortium, Upbeat BidCo, mentioned it has acquired 85.04% of Imagine’s share capital and 73.27% of its voting rights by means of agreements and its simplified public tender supply.
The supply permits remaining shareholders to promote their shares at EUR €15 ($16) per share till the tip of this week (June 21). It additionally leaves the free float of Imagine at 14.96% of its issued share capital.
With over 85% of shares managed, Upbeat BidCo. might pressure remaining shareholders to promote by means of a “squeeze-out” process on the finish of the supply.
Whereas the consortium — which additionally consists of funding companies EQT and TCV — has said they don’t intend to pursue this feature, the choice might have penalties for the remaining shares. As a result of lower than 15% of Imagine’s shares will probably be publicly traded after the supply closes, inventory exchanges might select to delist them from sure indices.
“The truth that the free float represents lower than 15% of the share capital ought to result in Imagine’s shares quickly being faraway from sure inventory market indexes to which Imagine at present belongs.”
Upbeat BidCo
“The truth that the free float represents lower than 15% of the share capital ought to result in Imagine’s shares quickly being faraway from sure inventory market indexes to which Imagine at present belongs,” the consortium mentioned.
France-headquartered Imagine has been listed on the Euronext Paris since 2021 after elevating EUR €300 million ($321 million). It initially floated 14.35% of its fairness by means of the IPO.
The event follows a months-long saga that noticed a competing bid from Warner Music Group fall by means of. Warner had thought of making a EUR €17-per-share-plus supply to amass Imagine however determined to not pursue it in April.
Ladegaillerie’s consortium made its supply for Imagine in February. The group’s €15-per-share supply represents a 21% premium on Imagine’s closing value on February 9, and values the corporate’s 100% stake at €1.523 billion (USD $1.63billion).
Previous to the competing bid from Warner, Upbeat BidCo had already secured agreements to amass 71.92% of Imagine from present shareholders: 59.46% from TCV Luxco BD S.à r.l., Ventech and XAnge; and Ladegaillerie’s 12.5% stake.
Imagine is a digital music firm that gives a variety of providers to assist artists develop their viewers and careers, from distribution and promotion to expertise and experience.
“Imagine has a major alternative forward to consolidate the impartial music market and create the primary world main impartial, on the service of artists in any respect phases of their profession,” Denis Ladegaillerie, founder, Chairman & CEO of Imagine, mentioned in February.
“In reaching this ambition, I’m glad to proceed benefiting from the lively assist of TCV who has accompanied Imagine since 2014 and to be partnering with Europe-based EQT who has a terrific observe document in supporting high-growth corporations.”
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