William Ackman’s Pershing Square has committed to buy an additional 2.9% of Universal Music Group capital from Vivendi for $1.15bn, the French media conglomerate said in a statement.

Vivendi noted that the purchase price is based on an enterprise value of €35bn for 100% of UMG’s share capital.

The closing related to the 2.9% additional stake will take place by September 9, 2021.

Pershing Square will now own 10% of the UMG share capital, following an acquisition of 7.1% UMG stake earlier this month.

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Pershing Square in June agreed to acquire 10% of UMG from Vivendi for about $4bn.

Vivendi said in late June that its shareholders approved its proposal to distribute 60% of UMG’s share capital to Vivendi shareholders and list UMG on the Euronext Amsterdam stock exchange towards the end of September. The listing is now scheduled on September 21, 2021.

In January 2021, a Tencent Holdings-led consortium acquired additional 10% equity stake in UMG, lifting its ownership to 20%.

Source: Business Insider

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