(Reuters) Pershing Square is extending holdings in Universal Music Group by a further 2.9%, at the cost of $1.149 billion, improving the total stake in the company to 10%.
The 2.9% stake, acquired from Vivendi, is based on an enterprise value of 35 billion euros or $41.40 billion for 100% of UMG’s share capital.
The deal, expected to be finalized on September 9, comes before a 60% distribution of UMG’s share capital to shareholders of Vivendi and company listing on September 21.
Vivendi aims to use the proceeds from the UMG transaction to pay off debt, finance acquisitions, and share buybacks.
UMG has benefited from a rebound in the music industry, with streaming services booming amid a surge in the sales of CDs and vinyl records.
VIV is down -1.12%, PSH is currently closed for trading.
