William Ackman's Pershing Square To Buy 10% Of Vivendi's UMG For About $4 Bln

Hedge-fund billionaire William Ackman's Pershing Square Tontine Holdings Ltd. (PSTH) agreed to acquire 10% of Universal Music Group from French media conglomerate Vivendi (VIV.L,VIVEF.PK) for about $4 billion, the companies said in a statement on Sunday.

The deal represents an enterprise value of 35 billion euros for UMG. The deal would be subject to customary closing conditions including the authorization to be given by Vivendi shareholders at the June 22 Shareholders' Meeting.

The transaction is set to close in the coming weeks, and at the latest by September 15, Vivendi said.

Unlike most SPAC business combinations, PSTH and UMG will not combine into one company following the deal.

Pershing Square Tontine said it will remain listed with about $1.5 billion in cash and access to an additional $1.4 billion with the Pershing Square Funds. It will continue to search for a new business combination.

Pershing Square Tontine plans to distribute the Universal Music shares to PSTH shareholders after the music business's planned public listing in Amsterdam later this year.

Vivendi said that its management board will propose, at the June 22, 2021 Shareholders' Meeting, to distribute 60% of UMG's share capital to Vivendi shareholders and list UMG on the Euronext Amsterdam stock exchange towards the end of September.

In January 2021, a Tencent Holdings-led consortium acquired additional 10 percent equity stake in UMG, lifting its ownership to 20 percent.

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