(Yicai Global) April 1 -- A consortium led by Tencent Holdings has completed its acquisition of a 10 percent stake in Universal Music Group for EUR1 billion (USD1.1 billion) from French mass media conglomerate Vivendi, who hopes the move will bolster its push into the Asian market.

The parties penned the deal, involving Tencent Music Entertainment and other co-investors, at the end of last year, Tencent Holdings said in a statement yesterday. The terms give the consortium the option to buy a further 10 percent at the same valuation up until Jan. 15, 2021.

Shares in Tencent [HKG:0700] were up 0.11 percent at HKD380.60 (USD49.09) as of 10.03 a.m.

Vivendi believes Tencent's support will help UMG further develop in the Asian market, according to the statement, which said the consortium is keen to boost the target's long-term growth potential in the music industry despite the ongoing macroeconomic challenges.

The buyer and UMG have also signed a separate agreement under which the consortium can purchase a minority stake in UMG's China business within two years of the original transaction, the statement said.

Editor: James Boynton