Just three years after its successful IPO, shareholders in Believe may be exploring a route to take the French company private again.
Reuters reports that investors, including the group’s CEO & Founder Denis Ladegaillerie and U.S. investment firm TCV, have been feeling out interest in a private equity deal to take Believe private again. Reuters sources report that shareholders are working with advisors, which was confirmed by two people.
According to the report, Swedish private equity group EQT is among those that held talks with the shareholders about taking Believe private. The Paris-based company currently has a market cap of around $1.04 million (€948 million). Talks with the Swedish equity group ended in December 2023, while a second source confirms Permira, a British private equity group, was also involved in discussions.
Right now, it’s unclear if the deal will materialize as takeover talks are still ongoing. Neither TCV nor Ladegaillerie responded to requests for comment from Reuters as they put the story together. Ladegaillerie has around 12.4% stake in the company, with TCV controlling 41.1%. News about a potential deal to take Believe private has sent the stock’s price soaring.
The stock is currently trading well below its 2021 IPO price of 17.30 euros per share. As of the time of writing, Believe SA was trading at 10.10 euros per share, up nearly 12.6% compared to the price when the trading day started.
Believe is one of the world’s leading digital music companies, helping artists and labels build their audiences and careers throughout all stages of development. It has offices in local markets across the world, with net sales distributed as follows: France (16.9%), Germany (14.9%), Europe (27.6%), Asia/Oceania/Africa (26.2%) and the Americas (14.4%). The company has worked hard to branch out in Southeast Asia and Australia in the last two years, contributing to the massive growth of the region.