Vivendi negotiates with financier Ackman to sell 10% of Universal

by time news

Vivendi is negotiating with Pershing Square Tontine Holdings, the US financier’s SPAC Bill Ackman, for the sale of 10% of the shares of Universal Music Group for about 4 billion dollars with an enterprise value of 35 billion euros for Umg: this is how the SPAC statement reports, in the wake of the indiscretions reported by the Wall Street Journal. Furthermore, in addition to the transaction – the press release states – the Pershing Square funds and their affiliates have indicated that they could acquire greater economic exposure to Umg, buying Vivendi shares and / or buying Umg shares after the distribution of Umg shares by Vivendi “.

“Unlike many SPAC transactions, Psth and Umg will not merge into a single company”, indicates the press release from Ackman’s company, that intends to remain listed in New York. With the proposed transaction, the value of Umg therefore rises further compared to the 30 billion euros that were the basis of the sale of 20% to the Chinese Tencent, which took place in two phases between March 2020 and January 2021, and to the 33 billion reported. in May in the documentation in view of the Vivendi assembly of 22 June.

The French media company, which is 27% controlled by Vincent Bollore, has indicated that it intends to list Umg on the Amsterdam Stock Exchange by 27 September, after having distributed 60% of the capital to Vivendi shareholders. On that occasion, the company also specified that the opportunity to sell 10% of Umg to a US investor or to make a public offer of 5-10% of the company’s capital was being examined. In the first quarter of the year, Umg, which has always played a decisive part in Vivendi’s performance, recorded revenues of € 1.8 billion: + 2.2% on a historical basis and + 9.4% at constant exchange rates and perimeter.

The “catalog” of the company – one of the majors in the sector along with Sony and Warner – goes from the Beatles to Rihanna, from Lady Gaga and Justin Bieber. It also took over Bob Dylan’s entire catalog of songs last December, with one of the industry’s largest deals. “Universal Music Group is one of the largest businesses in the world“, said Bill Ackman, CEO of Psth, quoted in the release.” Led by Sir Lucian Grainge, he has one of the best team of managers I have ever met, “continues Ackman, adding that Umg ‘” meets all our criteria. acquisition and investment principles, as a leading music company. ”

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