Pershing Square Distributes 2.6% of UMG Shares While Maintaining Strong Long-Term Investment Outlook
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 while maintaining its core position of 140 million shares (7.6% ownership).
Bill Ackman speaking at Pershing Square
The distribution comes as Pershing's finite-life co-investment vehicles approach their January 31st end date. Rather than providing cash, the company opted for a tax-free stock distribution to limited partners.
Key points about the distribution:
- Bill Ackman and his affiliates are not selling any shares
- Pershing Square maintains its belief in UMG as a long-term investment
- The company considers UMG's current share price "substantially undervalued"
This move follows Pershing Square's recent advocacy for UMG to relocate its listing to the NYSE or NASDAQ. According to Ackman, UMG's current trading discount and limited liquidity are largely due to its absence from major U.S. exchanges and ineligibility for S&P 500 inclusion.
While UMG initially resisted the relocation suggestion, the company has acknowledged Pershing's right to pursue a U.S. listing for its owned shares. This listing is expected to materialize in 2025.
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