Pershing Square Distributes 2.6% of UMG Shares, Maintains Strong Long-Term Investment Outlook
Pershing Square has completed a significant distribution of Universal Music Group (UMG) shares, distributing approximately 47 million shares (2.6% of UMG) to non-affiliated investors through its finite-life co-investment vehicles, which are approaching their January 31st end date.
Bill Ackman speaking at Pershing Square
Post-distribution, Pershing Square maintains ownership of 140 million UMG shares, representing 7.6% of the company. This holding includes stakes from its core funds, founder Bill Ackman, his affiliates, and employees. Notably, Ackman and his affiliates are not selling any shares in connection with this distribution.
Pershing Square continues to express strong confidence in UMG's long-term potential, stating that the current share price is "substantially undervalued." The firm, along with board member Ackman, has been advocating for UMG's relocation from the Euronext Amsterdam to a U.S. stock exchange since November.
The push for relocation stems from UMG's perceived undervaluation, with Ackman noting that the company "trades at a large discount to its intrinsic value with limited liquidity" due to not being listed on the NYSE or NASDAQ, preventing S&P 500 and other index inclusion.
While UMG initially resisted this suggestion, Pershing Square has secured the right to initiate a U.S. listing for its owned shares, expected sometime in 2025. The tax-free stock distribution and potential U.S. listing could significantly impact UMG's market capitalization and trading dynamics.
Drake performing onstage with mic
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