Universal Music Group (AEX:UMG) shares fell on Thursday after Bill Ackman’s Pershing Square Capital Management sold its remaining holding in the music company, bringing an end to a five-year investment.
According to media reports, Pershing Square sold approximately 80.6 million UMG shares through a private placement at €17.66 per share, representing roughly an 8% discount to Wednesday’s closing price. The stake sale was valued at more than $1.5 billion.
Universal Music also disclosed that it repurchased more than 14 million of its own shares from various Pershing Square funds for approximately €250 million ($289.9 million). The transaction was completed under the company’s existing €500 million share buyback program.
The divestment follows reports that Universal Music recently declined a takeover proposal from Ackman that would have valued the company at around $65 billion. According to The Wall Street Journal, Pershing Square’s investment in UMG generated an estimated profit of roughly $600 million.
The exit marks the conclusion of Pershing Square’s involvement with Universal Music, which dates back to 2021, when the hedge fund acquired its initial position ahead of the company’s public listing.
The stock was down about 3% at about $21, after earlier falling as much as 7%.