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Vivendi, William Ackman SPAC Confirm Talks on Sale of 10% UMG Stake — Update

   By Olivia Bugault 
 

-- Vivendi and Pershing Square Tontine Holdings confirm talks regarding the sale of a 10% stake in UMG

--The transaction represents an enterprise value of EUR35 billion for the label

-- William Ackman's special-purpose acquisition company plans to acquire the stake for approximately $4 billion

 

Vivendi SE and Pershing Square Tontine Holdings Ltd. both confirmed on Friday that they are in talks regarding the sale of a 10% stake in the French media conglomerate's subsidiary Universal Music Group.

The deal would give the world's largest music business an enterprise value of 35 billion euros ($42.44 billion), they said.

The potential transaction was reported late Thursday by The Wall Street Journal, citing people familiar with the matter.

Pershing Square Tontine Holdings said that it would spend roughly $4 billion for the stake and that it would distribute the UMG shares to its shareholders later in the year.

The sale of the shares to hedge-fund billionaire William Ackman's special-purpose acquisition company would happen prior to the distribution of 60% of UMG shares to Vivendi's shareholders and the listing of the music label in Amsterdam by the end of the year, Vivendi said in a separate statement. The deal will be subject to Vivendi's shareholders approval during its general shareholders meeting on June 22, it said.

"In addition, the Pershing Square funds and their affiliates have indicated that they may acquire additional economic exposure to UMG by acquiring Vivendi securities and/or by acquiring UMG securities following the distribution of UMG shares by Vivendi," Vivendi said.

Pershing Square Tontine Holdings -- which raised roughly $4 billion in a New York Stock Exchange initial public offering last year-- will remain a "publicly traded company with $1.5 billion of cash after the distribution of UMG shares, and to seek new business combination partner," the SPAC said.

 

Write to Olivia Bugault at olivia.bugault@wsj.com

 

(END) Dow Jones Newswires

June 04, 2021 04:16 ET (08:16 GMT)

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