Pershing Square Distributes 2.6% of UMG Shares While Maintaining Strong Long-Term Investment Position
Pershing Square has completed a significant distribution of Universal Music Group (UMG) shares, distributing approximately 47 million shares (2.6% of UMG) to non-affiliated investors. This distribution comes as the firm's finite-life co-investment vehicles approach their January 31st end date.
Bill Ackman speaking at Pershing Square
Following the distribution, Pershing Square maintains ownership of 140 million UMG shares, representing 7.6% of the company. This includes stakes held by core funds, founder Bill Ackman, his affiliates, and employees. The distribution was executed as a tax-free stock transaction, with Ackman and his affiliates retaining their full positions.
Pershing Square remains bullish on UMG's future, stating that the company "will remain an attractive long-term investment" and suggesting that the current share price is "substantially undervalued."
The firm has been actively pushing for UMG's relocation to a U.S. stock exchange since November. Ackman specifically noted that UMG's current trading discount and limited liquidity are largely due to its absence from the NYSE or NASDAQ, preventing its inclusion in the S&P 500 and other major indices.
While Universal Music initially resisted the relocation suggestion, they have acknowledged Pershing's right to initiate a U.S. listing for its owned shares. This listing is expected to occur in 2025.
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