Kuke Music Announces Controlling Stake in Naxos

Chinese classical music services platform Kuke Music Holding Limited has acquired a controlling interest in independent classical music company Naxos Music Group.

The deal:

• As per its press release, Kuke says the deal represents a transformative step in its strategy to expand its classical music ecosystem globally.

• The transaction provides “significant strategic synergies between Kuke’s music education platform and Naxos Music Group’s extensive classical music catalog and established global distribution network.”

The purchase:

• Kuke first subscribed for 17,500 newly issued Class B ordinary shares of Naxos One at $6,000 per share, for a total of $105 million.

• It then acquired 108 Class A ordinary shares from existing shareholder Desun Holding Limited at $12,500 per share, for a total of $1.35 million.

• The transactions give Kuke a 70.43% interest in Naxos One Holding Limited, which controls Naxos Music Group.

Share surge:

• Kuke’s stock rose 240% in after-hours trading following the announcement.

What they said:

• Peixian Tan, Chairman and CEO of Kuke Music: “This strategic acquisition of Naxos Music Group represents a landmark transaction that will significantly enhance our position as a leading classical music services platform. Naxos’ world-class content library, combined with its proven global distribution capabilities, creates compelling synergies with our existing music education and technology platforms.”