Bill Ackman’s Pershing Square Capital Management (PSCM) is closing the investment fund that holds a stake in Universal Music Group and distributing 47 million shares of the music company to the fund’s co-investors.
The news came on the same day pershing square holdings corp.PSCM’s closed-end fund announced that it has received regulatory approval to delist from Euronext Amsterdam.
Pershing Square Holdings 10.25% According to UMG’s annual report, UMG’s share count will decrease by the end of 2023. this 47 million Number of shares allocated by Pershing Square 2.6% UMG’s outstanding shares. After the distribution, the investment company will still hold 140 million shares, or 7.6% Pershing Square said in a statement Thursday that UMG’s.
“PSVII Funds elected to distribute UMG stock rather than cash to its limited partners because we believe UMG stock is significantly undervalued at its current stock price and the tax-free stock distribution allows our limited partners to continue to own UMG stock,” Pershing Plaza said.
At UMG’s current share price, the PSVII allocation is worth about $100. 1.14 billion euros (US$1.17 billion), and Pershing Square’s remaining stake in UMG is valued at approximately 3.395 billion euros.
Pershing Square acquired a 10% stake in UMG in the summer of 2021 in a series of transactions. The investment firm said the PSVII fund is in 18.28 euros Dividends received per share 1.66 euros Earnings per share over the last four years of investing.
“PSVII Funds elected to allocate UMG stock to its limited partners rather than cash because we believe UMG stock is significantly undervalued at its current share price.”
pershing square
Calculated based on UMG closing price 24.72 euros Record major has achieved total returns as of December 31, 2024 46%Pershing Square said dividends during that period were included.
“Compared to the S&P 500, this return is quite impressive 37% Returns and returns of the Amsterdam Exchange Index twenty one% During the same period,” the company noted.
Meanwhile, the company announced it had received approval to delist Pershing Square Holdings from Euronext Amsterdam, the same exchange where UMG trades, at the end of this month. Pershing Square announced Thursday that its last trading day on the Amsterdam Stock Exchange will be January 30 and that it will delist on January 30.
The company said shareholders can still trade their shares on the London Stock Exchange (LSE).
Ackermann decided to remove Pershing Square from the Amsterdam exchange after violence broke out in the city during a match between local Ajax football club and Maccabi Tel Aviv in November. Israeli tourists and Jews were reportedly attacked in the streets, with some describing the incident as a massacre.
Ackerman, an outspoken supporter of Israel, wrote on X in November that the violence in Amsterdam was a “turning point” in the decision to delist from the city’s stock exchange.
“Concentrating listings on one exchange, the London Stock Exchange, and leaving a jurisdiction that fails to protect tourists and minority ethnic populations combines good business principles with ethical principles. We can also save money and Improve shareholder liquidity,” Ackman wrote.
Ackman has also been pushing for Universal Music Group to move from the Amsterdam exchange to New York, a move he believes will provide “highly material benefits” to Universal Music Group investors, and believes Pershing Square has the “right to make Universal Music Group’s New York securities Contractual rights to be listed on an exchange”. USA”.
However, Universal Music Group appears to be resisting Ackman’s proposal, arguing that Ackman has the authority to request but not order the company to switch to a U.S. listing.
Pershing Square Capital Management values approx. $10 billion Earlier this year, a group of investment firms acquired a 10% equity in the company.
The blockbuster deal was followed by excitement around the opening of Ackman’s new US-based Pershing Square USA. However, Ackman canceled Pershing Square USA’s IPO last summer, citing investor uncertainty, after significantly lowering his IPO price target for the investment startup.global music business
