Vivendi to sell additional shares in Universal Music Group to Pershing
By Jenny McCall
08:19, 31 August 2021
French media conglomerate Vivendi announced on Tuesday that it will sell additional share capital in Universal Music Group (UMG) to hedge fund management company, Pershing Square Holdings.
The Paris-based group will sell 2.9% of UMG’s ordinary shares at the same price per share. The deal, which Vivendi said would be completed by 9 September, will mean that Pershing now have a 10% stake in UMG.
Discussions between Vivendi and Pershing Square concerning UMG, which is the company behind well-known artists such as Taylor Swift, Ariana Grande and Alicia Keys, began on 4 June, for an initial acquisition of 10%. However, in July, Pershing Square restructured the deal after regulators at the US Securities and Exchange Commission (SEC) raised concerns.
Acquisition of additional shares
On 10 August, Pershing Square Funds acquired 128,555,017 ordinary shares of UMG for $2.8bn (£2.04bn), representing a 7.1% stake in the music company.
In its August financial statement, Pershing said that it will exercise its right to acquire an additional 2.9% of UMG’s ordinary shares.
“Vivendi is pleased to announce that Pershing Square has committed to acquire an additional 2.9% of the UMG capital for a price of USD 1.149 billion based on an enterprise value of €35 billion for 100% of UMG’s share capital,” the statement said.
Vivendi stock price opened lower in early morning trading today and was down 0.97% at €32.64.
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Read more: Pershing announces Universal Music deal worth $2.8bn
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