Universal Music Group Takes a Major Step Towards US Listing
In a significant development, Universal Music Group (UMG) has announced that Pershing Square, led by billionaire Bill Ackman, has exercised its right to request an offering and secondary listing of the record label in the United States. This move comes after Ackman expressed his intention to relocate both Pershing Square and UMG, whose star-studded roster includes Taylor Swift, away from Amsterdam following attacks on Israeli soccer fans in the city.
A Shift in Strategy
Ackman had previously reduced his stake in UMG from 10% to 7.48%, according to data compiled by LSEG, after the record label denied his request to delist from Euronext Amsterdam. However, UMG had stated that Pershing Square had the right to request a U.S. listing, provided that a Pershing entity sells at least $500 million worth of its shares as part of the listing. Notably, this right does not require UMG to become a U.S.-domiciled company or to delist from Euronext Amsterdam.
Timeline for the Offering
UMG has now confirmed that it will launch an underwritten offering for the sale of certain shares owned by Pershing by September 15. In a post on X, Ackman explained that they waived the 120-day filing requirement and extended the date to mid-September to give UMG sufficient time to complete the listing and offering in a manner that benefits the company and its shareholders.
Pershing Square’s Amsterdam Exit
It’s worth noting that Pershing Square delisted its shares from Euronext Amsterdam in December, marking a significant shift in its strategy. With this latest development, UMG is poised to take a major step towards a U.S. listing, which could have significant implications for the music industry and its stakeholders.
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