Vivendi, William Ackman SPAC Confirm Talks on Sale of 10% UMG Stake

   By Olivia Bugault

Vivendi SE said Friday that it is in talks with Pershing Square Tontine Holdings Ltd. regarding the sale of a 10% stake in subsidiary Universal Music Group that would value the world's largest music business at 35 billion euros ($42.44 billion).

The French media conglomerate said the sale of the stake to hedge-fund billionaire William Ackman's special-purpose acquisition company would happen prior to the distribution of 60% of UMG shares to investors and the listing of the label by the end of the year.

In a separate statement on Friday, Pershing Square Tontine Holdings also confirmed the discussions to acquire the stake for roughly $4 billion and said it will distribute the UMG shares to its shareholders later in the year. The company will remain a "publicly traded company with $1.5 billion of cash after the distribution of UMG shares, and to seek new business combination partner," it said.

The potential deal was reported late Thursday by The Wall Street Journal, citing people familiar with the matter.

"In addition, the Pershing Square funds and their affiliates have indicated that they may acquire additional economic exposure to UMG by acquiring Vivendi securities and/or by acquiring UMG securities following the distribution of UMG shares by Vivendi," Vivendi said.

Write to Olivia Bugault at olivia.bugault@wsj.com

(END) Dow Jones Newswires

June 04, 2021 03:17 ET (07:17 GMT)

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