The main shareholders of digital record label Believe, which represents rapper Jul among others, have been considering delisting the company in recent weeks, people familiar with the matter have told Reuters.

These shareholders, which include group CEO and founder Denis Ladegaillerie and US investment firm TCV, have been sounding out private equity firms to consider a bid for Believe, less than three years after its stock market debut, the sources said on condition of anonymity.

In particular, Swedish private equity group EQT began discussions with Believe shareholders, before ending them last month, said one of the people familiar with the matter. Negotiations between Permira and the shareholders also took place, without materializing, said a second source.

While there is no indication that the deal will go ahead, talks are still ongoing, said a third source close to the matter.

Believe's market capitalization stands at 948 million euros, and the group's shares were worth 9.74 euros at the close on Thursday, around half their IPO price in June 2021.

TCV declined to comment, Denis Ladegaillerie did not respond to Reuters' inquiries, and a Believe spokesman had no immediate comment.

Founded in 2005 and based in Paris, Believe advises independent artists and music labels, particularly on the distribution and promotion of their music.

Over the past year, several such takeovers have taken place in Europe, involving listed companies that have struggled to establish themselves on the stock markets.

In August, EQT offered to buy the outstanding shares of Suse, a German software group in which it held a 79% stake, or half the value at which EQT took the company public in April 2021.

(Reporting by Amy-Jo Crowley and Pablo Mayo Cerqueiro in London, with Mathieu Rosemain in Paris; French version by Camille Raynaud, edited by Kate Entringer)

by Amy-Jo Crowley, Pablo Mayo Cerqueiro and Mathieu Rosemain