Vivendi Sells 7.1% Of UMG To Pershing Square

• Vivendi, the parent company of Universal Music Group, has sold 7.1 percent of UMG’s share capital to Pershing Square Holdings, managed by hedge fund billionaire Bill Ackman, for $2.8 billion, with the option to sell him another 2.9% by September 9, 2021.

In early June we first reported that Pershing Square Tontine Holdings, Ltd. (PSTH), a special purpose acquisition company (SPAC), run by Ackman confirmed it was in discussions with Vivendi S.E. to acquire 10% of the outstanding Ordinary Shares of Universal Music Group B.V. (UMG). On June 20, the deal, originally estimated to be worth around $4 billion was formalized.

In late July, however, Ackman decided to pull PSTH’s participation, citing questions from the Securities and Exchange Commission (SEC) about whether the structure of a SPAC would allow such an acquisition under the rules of the New York Stock Exchange, opting instead to use his own investment funds at Pershing Square Holdings to acquire a 5-10% stake in UMG.

Vivendi’s formal announcement of Ackman’s acquisition ended with this genial note, translated from French, that reads, “Vivendi is very satisfied with the arrival at UMG of Mr. Ackman, a major American investor, providing once again evidence of the music company’s global success and attractiveness.”