PERSHING SQUARE PUSHES TO SET UP U.S. LISTING FOR UMG

Pershing Square Holdings, headed by billionaire Bill Ackman (pictured), has requested a secondary listing of Universal Music Group on a U.S. stock exchange, UMG announced today (1/16).

Under an agreement disclosed on 11/9/24, UMG will facilitate an underwritten offering for Pershing Square to sell at least $500m of its UMG shares—which are valued at $3.3b—by 9/15 as part of the listing process.

Ackman made the move in an effort to enhance UMG’s presence in the U.S. market, attract a broader investor base and boost the company’s valuation.

“Pershing Square… has exercised its right under the previously disclosed Registration Rights Agreement between UMG and Pershing to request an offering and secondary listing of UMG in the U.S.” UMG’s announcement reads in part. “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."

Confirming the move on X, Ackman noted, “We exercised our right to cause UMG to list in the U.S. because we believe it will substantially increase demand for (and the valuation of) UMG shares from investors who by mandate are limited to investing in securities listed on U.S. exchanges, and likely attract additional analyst coverage for the company. We also believe the U.S. listing will greatly improve trading liquidity for the shares.

“We waived the 120-day filing requirement and extended the date to mid-September in order for UMG to have an appropriate amount of time to complete the listing and offering in a manner best for the company and its shareholders.”

“We remain excited about UMG's long-term growth prospects and opportunities for shareholder value creation.”

UMG stock is listed on Euronext Amsterdam.