Bill Ackman sees Universal Music SPAC deal closing later this month

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

Adam Jeffery | CNBC

Billionaire investor Bill Ackman stated Friday he expects to shut his SPAC deal to purchase 10% of Universal Music Group for round $four billion later this month.

Ackman’s blank-check firm Pershing Square Tontine Holdings (PSTH) is more likely to end the transaction by June 22, the investor instructed CNBC’s Scott Wapner. French media firm Vivendi, the majority proprietor of Universal Music controlling 80%, is ready to carry its shareholder assembly on that day.

Ackman stated he’s excited concerning the deal and believes he’s getting a slice of the No. three participant within the area at a reduction.

The deal would worth Universal Music at 35 billion euros (round $42.four billion). It is not going to lead to a merger and Universal Music will go forward with a deliberate itemizing on Euronext Amsterdam within the third quarter of 2021.

The deal would depart $1.5 billion in residual money in Ackman’s SPAC, which might be rolled right into a first-of-its-kind SPARC, or particular objective acquisition rights firm, for one more acquisition down the street.

Unlike a standard SPAC the place buyers commit capital with out figuring out the goal firm, Ackman will inform SPARC buyers of the potential acquisition earlier than they pledge funds. In different phrases, buyers get to choose in in the event that they just like the deal and stroll away if not.

Ackman’s hedge fund will personal about 30% of the SPARC, which is able to stay listed on the NYSE however will now not be handled as a SPAC underneath the trade’s itemizing guidelines.

The SPARC may have a minimal of $6.6 billion of money and as much as roughly $10.6 billion for the subsequent deal.

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