Pershing Square proposes $64 billion Universal Music merger with acquisition company

April 7 (Reuters) - Bill Ackman's Pershing Square connected Tuesday projected merging its acquisition conveyance with Universal Music Group with a program to database successful the United States successful a woody aimed ‌at reviving the world's biggest euphony label's value.

Pershing Square's cash-and-shares connection values Universal Music astatine astir 30.40 ‌euros per share, representing a 78% premium to past adjacent terms astatine 17.10 euros and making the woody worthy 55.75 cardinal euros ($64.31 ​billion), according to Reuters calculation.

Universal Music Group - the institution down signaling artists including Taylor Swift, Billie Eilish and Drake - did not instantly respond to a petition for comment.

The Amsterdam-listed amusement company's shares jumped astir 13% successful the aboriginal trading connected Tuesday, portion apical shareholder Bollore Group's were up 6%.

PERSHING HOPES NEW YORK LISTING WILL BOOST UMG SHARES

Pershing's determination comes ‌after UMG past period delayed a program ⁠for a U.S. listing, walking backmost connected an statement with Pershing, which had exercised its close to petition a U.S. offering and had argued a New York listing would ⁠boost UMG's stock terms and liquidity.

In a missive to UMG directors, Ackman said its absorption had done an "excellent" occupation of moving a beardown concern and strategical execution, but its stock terms has languished since its listing successful 2021.

He blamed uncertainty ​over ​the 18% involvement held by Bollore Group, the hold to ​the planned U.S. listing and underutilisation of its ‌balance sheet, among different things.

Under Tuesday's non-binding proposal, Pershing's SPARC Holdings would merge with UMG and the caller entity, to beryllium called Nevada Corporation, would beryllium listed connected the New York Stock Exchange.

Talent cause and erstwhile Walt Disney Company president Michael Ovitz would articulation the UMG committee arsenic chairman, Pershing Square said.

Pershing Square said that nether the transaction UMG shareholders would person a full of 9.4 cardinal euros successful currency and 0.77 shares successful Nevada ‌for each stock held successful UMG.

The currency information of the ​new projected woody would beryllium funded by Pershing from its SPARC's ​rights holders, debt, and nett proceeds from the ​company's involvement successful Spotify, it said.

Bollore Group did not instantly respond to a petition for ‌comment.

A spokesperson for Vivendi, which is UMG's second-largest ​shareholder, did not remark connected ​the proposal.

Tencent Holdings, UMG's third-biggest shareholder, did not instantly respond to a petition for a comment.

The transaction is expected to adjacent by the extremity of the year, Pershing Square said. It has a 4.7% ​stake according to LSEG data, making ‌it UMG's fourth-biggest shareholder.