Kuke Music acquires controlling interest in Naxos Music Group

Kuke Music (KUKE) has acquired a controlling interest in Naxos Music Group, one of the world’s largest independent classical music companies. Kuke acquired on the same day a controlling interest in Naxos Music Group through two transactions involving Naxos One and Desun, one of the two existing shareholders of Naxos One. The total transaction value is approximately $106.35M, and was settled entirely through the issuance of Kuke’s Class A ordinary shares as consideration. Kuke issued 652,997,260 Class A ordinary shares and 8,395,679 Class A ordinary shares to Naxos One and Desun. Each Consideration Share was valued at $0.1608. The consideration may be settled either in cash or through the issuance of Kuke’s Class A ordinary shares. The Consideration Shares held by Desun are subject to a lock-up period of 24 months. Upon completion of the transactions, Kuke holds approximately 70.43% of the outstanding shares of Naxos One, which in turn controls Naxos Music Group. The transactions have been approved by Kuke’s shareholders, Board of Directors and Audit Committee.