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Ackmans SPAC indicators settlement to buy 10% of Vivendis Common

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© Reuters. FILE PHOTO: The Vivendi logo is pictured at the main entrance of the headquarters of the entertainment and telecommunications group in Paris, France, April 22, 2021. REUTERS / Gonzalo Fuentes / File Photo

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PARIS / BANGALORE (Reuters) – Billionaire investor William Ackman's Pershing Square Tontine Holdings signed a deal to buy 10% of Universal Music Group (UMG), Taylor Swift's label, for about $ 4 billion, the companies said on Sunday .

"As announced, the transaction is based on an enterprise value of 35 billion euros (41.55 billion US dollars) for 100% of the share capital of UMG," said Vivendi (OTC :).

UMG, which will be spun off from the French Vivendi, will complete its planned listing on Euronext Amsterdam at the end of September, the media group announced.

Tontine said it will not distribute UMG shares to its shareholders until the listing is complete. "Immediately after the listing has been completed and the registration declaration becomes effective, the UMG shares acquired by PSTH will be distributed to our shareholders."

Vivendi, controlled by French billionaire Vincent Bollore, plans to capitalize on its UMG crown jewel by outsourcing the company to existing shareholders.

Earlier this year, the consortium, led by Tencent Holdings (OTC 🙂 Ltd, acquired another 10% stake in UMG, bringing the Chinese tech giant's total equity stake to 20%.

"The arrival of major American investors is further evidence of UMG's global success and attractiveness," said Vivendi.

Tontine said that after the transaction it will exist as RemainCo with access to approximately $ 2.9 billion in cash and intends to seek a business combination with an operating business immediately.

In its statement, the blank check firm referred to UMG's operating profit growth of more than 20% per year since 2017 and the analysts estimate of an operating profit of 1.5 billion euros (1.78 billion US dollars) for 2021.

Tontine became the biggest SPAC of all time when it raised $ 4 billion in an initial public offering (IPO) last summer, with Ackman's hedge fund Pershing Square bringing in at least an additional $ 1 billion.

($ 1 = 0.8424 euros)

($ 1 = 0.8423 euros)

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