By Adria Calatayud

Universal Music Group plans to launch a U.S. offering of some shares owned by Bill Ackman's Pershing Square, as the hedge-fund billionaire pushes for the record label behind Taylor Swift to list in the U.S.

An agreement between the world's largest music company and Ackman's firm gives Pershing the right to request a listing of Universal in the U.S. if it sells at least $500 million in stock as part of the offering.

Universal said late Wednesday that Pershing exercised its right to request an offering and secondary listing of the company in the U.S. As a result, the Amsterdam-listed company said it will aim to carry out an offering of certain shares owned by Pershing in the U.S. by Sept. 15, it said.

Any actions or decisions beyond Universal's contractual obligations will be determined by the company's board, it said. The offering is subject to regulatory approval and market conditions, Universal said.

Ackman said Wednesday on X that his firm will complete the share sale in order for the U.S. listing to occur. The agreement requires that Pershing sell $500 million of Universal shares out of its current $3.3 billion investment, he added.

"We exercised our right to cause UMG to list in the U.S. because we believe it will substantially increase demand for (and the valuation of) UMG shares from investors who by mandate are limited to investing in securities listed on U.S. exchanges," Ackman said. "We also believe the U.S. listing will greatly improve trading liquidity for the shares."

The agreement between Pershing and Universal also included a 120-filing requirement, but Pershing waived it and extended the date to mid-September to give the company time to complete the listing and offering, Ackman said.

Ackman in November said that he wanted to terminate the Amsterdam listings of Universal and Pershing in the wake of street violence after a soccer game in the Dutch capital that authorities called antisemitic attacks.

Universal said at the time that, while Pershing had the right to request a U.S. listing subject to selling $500 million worth of stock, it didn't have any right to require Universal to become a U.S.-domiciled company or delist from Euronext Amsterdam.

The company has its operational headquarters in Santa Monica and its corporate headquarters in the Netherlands. The label started trading on the Euronext Amsterdam in September 2021 after a spinoff from Vivendi, the French conglomerate steered by the family of French billionaire Vincent Bollore.

Write to Adria Calatayud at adria.calatayud@wsj.com

(END) Dow Jones Newswires

January 16, 2025 02:39 ET (07:39 GMT)

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