A group of shareholders linked to billionaire Bill Ackman’s Pershing Square hedge fund has offloaded a 2.7% stake in Universal Music Group (EURONEXT:UMG), raising over €1.3 billion, according to Bloomberg.
Pershing Square Holdings, along with two other Pershing Square entities, sold around 50 million shares at €26.60 each, according to deal terms seen by Bloomberg. Shares were initially marketed at up to €27.90.
The sale was tied to an agreement with Universal Music, which required Ackman’s firm to sell $500 million worth of shares ahead of a planned US listing.
Despite calling Universal one of the best businesses he has ever owned, Ackman’s stake in the world’s biggest music company has now dropped to around 17% of his portfolio.
Universal Music’s stock tumbled as much as 11% in Amsterdam, trading below the placement price at €25.09.