Pershing Square to Increase its Stake in Vivendi by 2.9%

United States hedge fund management company Pershing Square Holdings Ltd (AMS: PSH) announced that it will be increasing its stake in Vivendi SE (EPA: VIV) which owns Universal Music Group (UMG) by 2.9% for $1.49 billion.

Vivendi claims that this transaction is based on an enterprise value of $41.40 billion for 100% share capital of Universal Music Group. The company further added that this deal will be closed by September 9.

After the deal is closed, Pershing Square will now own 10% stake of Universal Music Group share capital following another 7.1% stake of the company it acquired in August.

This announcement comes before the disbursement of UMG’s 60% share capital to the shareholders of Vivendi and listing of the company slated for September 21.

Apart from UMG, Vivendi has other media assets including video games company Gameloft, video sharing firm Dailymotion, pay TV company Canal+, communications group Havas among other entertainment and publishing companies.

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