Done Deal: Pershing Square Buys 10% Of UMG
• It was just two weeks ago when we first reported that Pershing Square Tontine Holdings, Ltd. (PSTH), a special purpose acquisition company (SPAC), run by hedge-fund billionaire Bill Ackman formally confirmed that it was in discussions with Vivendi S.E. to acquire 10% of the outstanding Ordinary Shares of Universal Music Group B.V. (UMG).
On Sunday, the deal was confirmed, as Vivendi formally announced the signing of an agreement with PSTH for the sale of 10% of the share capital of Universal Music Group (UMG BV). As was announced, the transaction is based on an enterprise value of €35 billion (around $41.5 billion) for 100% of UMG’s share capital.
The closing of this transaction is subject to the continued participation of PSTH shareholders after they are afforded customary redemption rights, and completion of U.S regulatory processes, and is expected to take place in the coming weeks, and at the latest by September 15, 2021. After the 20% equity stake acquired by the Consortium led by the Tencent group (completed in Feb. 2021), the arrival of major American investors provides further evidence of UMG’s global success and attractiveness.
It should be noted that Vivendi’s Management Board will propose, at Tuesday’s Shareholder’s Meeting, the distribution of 60% of UMG’s share capital to Vivendi shareholders and the listing of the company on the Euronext Amsterdam stock exchange near the end of September.
