Tencent plans to increase stake in Vivendi’s Universal Music

Tencent Holdings Ltd. is planning to increase its stake in Universal Music Group by a further 10% before the option expires in January, according to people familiar with the matter.

The Chinese technology company last year led a consortium that purchased 10% of the world’s biggest music company from French media company Vivendi SA. That deal valued Universal Music at 30 billion euros ($35.2 billion) and Tencent and its partners have the option to increase their stake to as much as 20% at the same valuation until Jan. 15, 2021.

Tencent is likely to exercise this option, three people said, asking not to be identified as the deliberations are private. It could make the move before year-end, one person said.