Vivendi Confirms Talks To Sell Stake In Universal Music Valuing Company At $42B

Ariana Grande
Ariana Grande AP

French media giant Vivendi has confirmed it is in talks to sell a 10% stake in Universal Music Group to hedge fund billionaire Bill Ackman’s Pershing Square Tontine Holdings in a deal that values the music company at €35 billion ($42B).

The transaction is subject to approval from Vivendi shareholders. It comes ahead of Vivendi’s plans to list Universal Music Group in Amsterdam, the Netherlands, in late September, when 60% of Universal’s shares will be distributed to Vivendi investors.

If the Pershing Square Tontine Holdings is completed, the Special Purpose Acquisition Company (SPAC), will hold 10% of Universal Music Group, while Vivendi will also have a 10% holding. The remaining 20% of Universal Music Group is owned by Chinese tech giant Tencent.

Vivendi said in a statement: “Vivendi and Pershing Square Tontine Holdings, Ltd. (PSTH), represented by Chief Executive Officer Bill Ackman, have entered into discussions for Vivendi to sell 10% of the Universal Music Group (UMG BV) share capital to PSTH, prior to the distribution of 60% of the UMG shares and its listing.

“This transaction would be based on an enterprise value of €35 billion for 100% of the UMG BV share capital, subject to the authorization given by Vivendi shareholders at the June 22, 2021 Shareholders’ Meeting, to distribute 60% of the UMG share capital and list the company.”

Universal operates labels responsible for artists including Ariana Grande, The Beatles, Taylor Swift, Billie Eilish, and Nirvana.

This article was printed from https://deadline.com/2021/06/vivendi-sell-stake-universal-music-valuing-pershing-square-tontine-holdings-1234769295/