German media group Bertelsmann plans to sell its 50 per cent stake in music company Sony BMG and its wholly owned music publishing arm to avoid a stock market listing, newspapers reported today.
Groupe Bruxelles Lambert (GBL), the investment vehicle of Belgian financier Albert Frere, has said it plans to take public its 25 per cent stake in Bertelsmann, a company that has been closely held for 170 years.
The combined value of Bertelsmann's stake in Sony BMG, a 50-50 joint venture with Japan's Sony Corp, and its BMG Music Publishing operations is about $3.5 billion to $4 billion, the Wall Street Journalreported.
Analysts have valued GBL's stake in Bertelsmann at approximately €5 billion.
The Financial Timesreported that the sale plans were at an early stage but that Bertelsmann had asked investment bankers to begin preparations.
Bertelsmann Chief Executive Gunter Thielen said last week that the media conglomerate was happy with Sony BMG, home to artists including Kelly Clarkson and Bruce Springsteen.
Sony BMG is the world's second largest music company behind Vivendi's Universal Music.