Pershing Square Holdings principal Bill Ackman will not obtain his desire of a Universal Music Group (UMG) de-listing from the Euronext Amsterdam exchange, however the bush fund king’s promote a UMG listing on a united state exchange will certainly however involve fulfillment in 2025.
UMG introduced Wednesday (Jan 15) that Pershing Square and a few of its associates have actually asked for an offering and listing on a united state stock market and forgoed the 120-day declaring demand. UMG, “in line with its contractual obligations,” will certainly make use of “commercially reasonable efforts to launch an underwritten offering for the sale of certain shares owned by Pershing by September 15, 2025,” according to the firm’s declaration. Pershing Square holds a 7.6% risk in UMG presently valued at $3.48 billion.
“Any actions or decisions of UMG beyond those necessary to comply with its contractual obligations under the Registration Rights Agreement will be determined by the Board of Directors of UMG based on an analysis taking into account what is value maximizing and in the best interests of all the shareholders of UMG,” the declaration proceeds.
Following fierce strikes versus Israeli football followers in Amsterdam in November 2024, Ackman, that is additionally a UMG board participant, called on UMG to de-list from the Euronext Amsterdam exchange, where it has actually traded because it damaged from Vivendi in 2021, and relocate its lawful head office from the Netherlands to theUnited States Pershing Square rapidly looked for authorization to delist its very own supply from the Euronext Amsterdam exchange, with its demand granted onJan 2; it will formally de-list onJan 31. Pershing Square supply will certainly remain to be provided on the London Stock Exchange.
“Leaving a jurisdiction that fails to protect its tourists and minority populations combine both good business and moral principles,” Ackman created on X at the time. Pershing Square, he proceeded, would certainly exercise its “contractual right to cause UMG to be listed in the US… and achieve a US listing for UMG no later than some time next year.”
In reaction, UMG clarified that Pershing Square can utilize its UMG holdings for a united state listing however could not determine added terms.“As disclosed in UMG’s listing prospectus, 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. Pershing does not have any right to require UMG to become a U.S. domiciled company or delist from Euronext Amsterdam.”
A twin listing is not uncommon for an openly traded firm. Listing in several nations gives a firm with accessibility to even more capitalists and bushes versus undesirable policy adjustments in any type of one nation. Among songs business, Tencent Music Entertainment sell both the united state and Hong Kong.
UPDATE: An earlier variation of this post incorrect put Pershing Square’s risk in UMG at 10.25%. After a circulation of UMG shares to Pershing Square’s restricted companions, announced on January 2, its UMG risk stands at 7.6%.
