Vivendi sells 7.1% of UMG’s share capital for $ 2.8 billion per pershing, company news

PARIS, Aug 10 (Reuters) – US billionaire William Ackman-led Pershing Square Investment Fund today announced the sale of 7.1% of Universal Music Group (UMG)’s capital. This will be an additional 2.9% by September 9th.

The transaction represents $ 2.8 billion, the French team said in a statement, based on a company value of 35 35 billion for 100% of UMG’s capital.

In Amsterdam in September, the media and entertainment team wanted to distribute 60% of its subsidiary’s capital to its current shareholders, as Vivendi sought to gain UMG’s value through the IPO process.

Vivendi shareholders, at a public meeting in June, almost unanimously approved the split of UMG and the distribution of 60% of the music label, giving victory to key partner Vincent Pollore after several activist funds were opposed.

Initially, William Ackman signed a 10% UMG sales agreement with prudent investment vehicle (SPAC) and Pershing Square Dontine Holdings (BSTH) before announcing last month that it would change the spec. Regulatory authorities in the use of a gap.

“Mr Ackman is expected to receive up to 2.9% of UMG’s capital by September 9, 2021, from funds he manages or holds the majority interest economy, based on the same estimate,” Vivendi said in a statement. (Written by Nicholas Delem and Jean Tergion)