PARIS (Reuters) – Vivendi (VIV.PA<\/a><\/span>) is in talks to promote a 10% stake in its prized and profitable Common Music Group (UMG) to Chinese language tech firm Tencent (0700.HK<\/a><\/span>) because it seeks to develop its presence in Asia. <\/p>\n FILE PHOTO: The emblem of Common Music Group (UMG) is seen at a constructing in Zurich, Switzerland July 25, 2016. REUTERS\/Arnd Wiegmann\/File Photograph – RC1EE289B960<\/span><\/p>\n<\/figcaption><\/div>\n<\/div>\n UMG is the world\u2019s largest music label forward of Sony Music Leisure and Warner Music, and is dwelling to artists similar to Girl Gaga, Taylor Swift, Drake and Kendrick Lamar. <\/p>\n The French media conglomerate stated on Tuesday that the deal would give UMG a preliminary fairness valuation of 30 billion euros ($33.6 billion) – higher than some had forecast – and that Tencent had an possibility to purchase an additional 10% of UMG. <\/p>\n Vivendi shares surged 7% as analysts welcomed the progress made on the sale of a stake in UMG and the valuation. <\/p>\n A cope with Tencent would increase UMG\u2019s presence within the tightly managed Chinese language market and match nicely with the Chinese language firm\u2019s Tencent Music Leisure (TME.N<\/a><\/span>) unit. <\/p>\n \u201cThe valuation seems to be good, and the progress made on the UMG deal can also be optimistic,\u201d stated Gregory Moore, fund supervisor at Keren Finance, which owns Vivendi shares. <\/p>\n Vivendi\u2019s Chief Government Officer Arnaud de Puyfontaine stated final month that proceeds of the sale of as much as 50% of UMG can be used for bolt-on acquisitions and \u201cvital\u201d share buybacks. <\/p>\n Managed by billionaire Vincent Bollore, Vivendi is in search of to money in on the rising public thirst for subscription and ad-based music streaming companies, which have propelled UMG\u2019s income over the past 4 years. <\/p>\n \u201cAlong with Tencent, Vivendi hopes to enhance the promotion of UMG\u2019s artists, with whom UMG has created the best catalog of recordings and songs ever, in addition to establish and promote new abilities in new markets,\u201d Vivendi stated in an announcement. <\/p>\n Vivendi first informed markets it might promote a part of UMG a 12 months in the past however had made little progress till asserting final month that it had chosen funding banks to begin a proper sale means of a minority stake, which must be finalised by the beginning of subsequent 12 months. <\/p>\n Funding banks have estimated the enterprise is value something between 17 billion to 44 billion euros. <\/p>\n Vivendi additionally stated on Tuesday that it was persevering with the method to promote additional minority stakes in UMG to different companions. <\/p>\n ($1 = 0.8925 euros) <\/p>\n Reporting by Sudip Kar-Gupta; Enhancing by Kirsten Donovan<\/p>\n<\/div>\n<\/div>\n<\/div>\n<\/figure>