Vivendi has confirmed the sale of 7.1% of UMG to Pershing Square Holdings and its affiliates.
Vivendi entered into discussions with Pershing Square Holdings and affiliates in June for the acquisition of 10% of Universal Music Group share capital owned by Vivendi, ahead of the distribution of 60% of UMG’s share capital to Vivendi’s shareholders. The major is set to be publicly listed in Amsterdam on September 21.
Vivendi sold 7.1% of UMG’s share capital to Pershing Square Holdings and affiliates, which are managed by William Ackman, for $2.8 billion based on an enterprise value of €35 billion for 100% of UMG’s share capital.
Ackman has the right to acquire, by September 9, up to an additional 2.9% of UMG’s share capital through funds which he manages or in which he holds the majority of economic interest, based on the same valuation.
“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,” said a Vivendi statement.
Earlier this year, Tencent completed a deal to take its stake in UMG to 20%.