UPDATE: Pershing Square signs deal to buy 10% of Vivendi’s Universal

Bill Ackman’s Pershing Square Tontine Holdings have reached an agreement with Vivendi, controlled by French billionaire Vincent Bollore, to sign a deal to acquire 10% of Universal Music Group (UMG).

“After the 20% equity stake acquired by the Consortium led by the Tencent group, the arrival of major American investors provides further evidence of UMG’s global success and attractiveness,” Vivendi said in a statement.

“As announced, the transaction is based on an enterprise value of 35 billion euros for 100% of UMG’s share capital.”

Vivendi is planning to cash in on its UMG crown jewel, the world’s biggest music label with artists such as Taylor Swift, by spinning off the entity to existing shareholders.

Source: Reuters