Universal Music Group has confidentially filed for a US listing, a move which would fulfil an agreement with Bill Ackman’s hedge fund firm Pershing Square, a long-time advocate for a transatlantic shift to unlock greater shareholder value, according to a report by Bloomberg.
The Amsterdam-listed music giant has submitted confidential documents to the US Securities and Exchange Commission for a proposed offering by certain shareholders, according to a statement on Monday. Universal itself will not receive proceeds from the sale.
While Universal’s management had previously resisted calls to redomicile or delist from Euronext Amsterdam, in January the firm, which is the label for roster of superstar artists including Taylor Swift, announced plans for a US listing to meet the terms of an agreement with Pershing Square. Ackman resigned from Universal’s board in May, citing time constraints related to his role as Executive Chairman of Howard Hughes Holdings.
Pershing-affiliated investors sold a 2.7% stake in Universal in March, raising more than €1.3bn ($1.5bn), according to Bloomberg.
Universal Music shares rose 0.9% in early trading Tuesday, outperforming the Amsterdam AEX Index.
