Investor Bill Ackman intends to bring Universal Music Group back to the United States, and he states he has a legal right to do so.
In a post on X, Ackman stated that he prepares to streamline his business Pershing Square Holdings at the London Stock Exchange and remove its listing on Amsterdam’s Euronext exchange. He includes the blog post that “Pershing Square has a contractual right to cause UMG to be listed in the U.S. We will exercise this right and achieve a U.S. listing for UMG no later than some time next year.”
Pershing possesses regarding 10 percent of UMG, the globe’s biggest songs tag. While UMG’s primary workplace remains in Santa Monica, it is headquartered in the Netherlands and has actually been provided on the Euronext exchange since going public in 2021 in an offer that included Ackman’s company.
Vivendi, the French media and telecommunications titan, formerly had UMG and rotated it out in the bargain.
Ackman included that “UMG trades at a large discount to its intrinsic value with limited liquidity in significant part due to it not having its primary listing on the [New York Stock Exchange] or [Nasdaq]
and not being eligible for S&P 500 and other index inclusion. We are going to fix this. Now is a good and appropriate time to do so.”
In a declaration to The Hollywood Reporter Saturday, a UMG representative stated that “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,” nevertheless they included that “Pershing does not have any right to require UMG to become a U.D. domiciled company or delist from Euronext Amsterdam.”
“While the company will endeavor in good faith to comply with its contractual obligations with respect to undertaking the process of a U.S. listing at the request of Pershing, any actions or decisions beyond those necessary to comply (including any decisions to change the domicile of the company) will be based on an analysis taking into account what is value maximizing and in the best interests of all the shareholders of the company,” the representative included.
Ackman stated that he had actually been thinking about the change for Pershing for a long time, however that “events in Amsterdam during the last 24 hours provide an appropriate tipping point for this conclusion.”
“Concentrating the listing on one exchange, the LSE and leaving a jurisdiction that fails to protect its tourists and minority populations combine both good business and moral principles,” he proceeded. “We can also save money and improve liquidity for shareholders to boot.”
Ackman’s blog post followed Israeli football followers were struck in Amsterdam adhering to an exhibit suit in between Israel’s Maccabi Tel Aviv and the neighborhood groupAjax The assaults, which authorities stated were antisemitic in nature, led to loads of injuries and created authorities to outlaw objections for 3 days.
Ackman has actually made dealing with the surge in worldwide antisemitism an individual reason, consisting of slamming his university Harvard after cases of antisemitism emerged in the in 2015 adhering to theOct 7 assaults in Israel.
