Billionaire investor William Ackman’s Pershing Square Tontine Holdings signed an agreement 0to acquire 10 percent of Universal Music Group (UMG), Taylor Swift’s label, for about $4 billion, the companies said on Sunday.
“As revealed, the transaction is based on an enterprise value of $41.55 billion for 100 percent of UMG’s share capital,” Vivendi said.
UMG, which is being spun-off by France’s Vivendi, will complete its planned Euronext Amsterdam listing in late September, the media group said.
Tontine said it will distribute UMG shares to its shareholders only after the completion of listing. “Promptly following the completion of the listing and the effectiveness of the registration statement, the UMG shares acquired by PSTH will be distributed to our shareholders.”
Earlier this year, the consortium led by Tencent Holdings Ltd purchased an additional 10 percent stake in UMG making the total equity stake controlled by the Chinese tech giant to 20 percent.
“The arrival of major American investors provides further evidence of UMG’s global success and attractiveness,” Vivendi said.
Tontine said it will continue to exist as RemainCo after the transaction with an access to about $2.9 billion in cash and intends to pursue a business combination with an operating business promptly.