Vivendi Enters Talks With Pershing Square Funds to Sell 10%

Vivendi Enters Talks With Pershing Square Funds to Sell 10% of UMG


Vivendi Enters Talks With Pershing Square Funds to Sell 10% of UMG
Elsa Keslassy, provided by
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Vivendi has entered into discussions with U.S. investment fund, Pershing Square Tontine Holdings, Ltd. (PSTH), to sell 10% of Universal Music Group’s (UMG BV) share capital ahead of its listing in Amsterdam before the end of September.
The sale of 10% would be based on an enterprise value of €35 billion ($42.3 billion) for 100% of the UMG BV share capital. The deal would have to be approved during Vivendi’s shareholders meeting on June 22, during which they are also expected to approve the distribution of 60% of the UMG share capital amongst shareholders in the form of special dividends. This distribution of dividends will precede the listing of those 60% of UMG shares on the Euronext market in Amsterdam, with a minimum target value for the company nearing €30 billion. UMG plans to retain 10% of UMG after these transactions.

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