Ackman’s SPAC signs deal to buy 10% of Vivendi’s Universal


Bill Ackman, founder and CEO of Pershing Square Capital Management.

Adam Jeffery | CNBC

Billionaire investor William Ackman’s Pershing Square Tontine Holdings signed a deal to buy 10% of Universal Music Group, Taylor Swift’s label, for about $four billion, the businesses stated on Sunday.

“As introduced, the transaction relies on an enterprise worth of 35 billion euros ($41.55 billion) for 100% of UMG’s share capital,” Vivendi stated.

UMG, which is being spun-off by France’s Vivendi, will full its deliberate Euronext Amsterdam itemizing in late September, the media group stated.

Tontine stated it’ll distribute UMG shares to its shareholders solely after the completion of itemizing. “Promptly following the completion of the itemizing and the effectiveness of the registration assertion, the UMG shares acquired by PSTH shall be distributed to our shareholders.”

Vivendi, managed by French billionaire Vincent Bollore, is planning to money in on its UMG crown jewel by spinning off the entity to present shareholders.

Earlier this yr, the consortium led by Tencent Holdings bought a further 10% stake in UMG making the full fairness stake managed by the Chinese tech large to 20%.

“The arrival of main American buyers offers additional proof of UMG’s world success and attractiveness,” Vivendi stated.

Tontine stated it’ll proceed to exist as RemainCo after the transaction with an entry to about $2.9 billion in money and intends to pursue a enterprise mixture with an working enterprise promptly.

The blank-check agency, in its assertion, pointed to UMG’s working revenue development of greater than 20% each year since 2017 and analysts’ estimation of working revenue of 1.5 billion euros ($1.78 billion) for 2021.

Tontine grew to become the largest ever SPAC when it raised $four billion in an preliminary public providing (IPO) final summer season, with Ackman’s hedge fund Pershing Square committing a minimal of a further $1 billion.

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