Pershing Square Holdings principal Bill Ackman is not going to receive his need of a Universal Music Group (UMG) de-listing from the Euronext Amsterdam alternate, nonetheless the bush fund king’s promote a UMG itemizing on a united state alternate will definitely nonetheless contain success in 2025.
UMG launched Wednesday (Jan 15) that Pershing Square and some of its associates have really requested for an providing and itemizing on a united state inventory market and forgoed the 120-day declaring demand. UMG, “in line with its contractual obligations,” will definitely make use of “commercially reasonable efforts to launch an underwritten offering for the sale of certain shares owned by Pershing by September 15, 2025,” in response to the agency’s declaration. Pershing Square holds a 7.6% danger in UMG presently valued at $3.48 billion.
“Any actions or decisions of UMG beyond those necessary to comply with its contractual obligations under the Registration Rights Agreement will be determined by the Board of Directors of UMG based on an analysis taking into account what is value maximizing and in the best interests of all the shareholders of UMG,” the declaration proceeds.
Following fierce strikes versus Israeli soccer followers in Amsterdam in November 2024, Ackman, that’s moreover a UMG board participant, called on UMG to de-list from the Euronext Amsterdam alternate, the place it has really traded as a result of it broken from Vivendi in 2021, and relocate its lawful head workplace from the Netherlands to theUnited States Pershing Square quickly appeared for authorization to delist its very personal provide from the Euronext Amsterdam alternate, with its demand granted onJan 2; it would formally de-list onJan 31. Pershing Square provide will definitely stay to be offered on the London Stock Exchange.
“Leaving a jurisdiction that fails to protect its tourists and minority populations combine both good business and moral principles,” Ackman created on X on the time. Pershing Square, he proceeded, would definitely train its “contractual right to cause UMG to be listed in the US… and achieve a US listing for UMG no later than some time next year.”
In response, UMG clarified that Pershing Square can make the most of its UMG holdings for a united state itemizing nonetheless couldn’t decide added phrases.“As disclosed in UMG’s listing prospectus, Pershing has the right to request a listing in the U.S. subject to a Pershing entity selling at least $500 million in UMG shares as part of the listing. Pershing does not have any right to require UMG to become a U.S. domiciled company or delist from Euronext Amsterdam.”
A twin itemizing isn’t unusual for an brazenly traded agency. Listing in a number of nations provides a agency with accessibility to much more capitalists and bushes versus undesirable coverage changes in any sort of 1 nation. Among songs enterprise, Tencent Music Entertainment promote each the united state and Hong Kong.
UPDATE: An earlier variation of this put up incorrect put Pershing Square’s danger in UMG at 10.25%. After a circulation of UMG shares to Pershing Square’s restricted companions, announced on January 2, its UMG danger stands at 7.6%.
