UMG Investor Pershing Square Holdings Pressures UMG to Delist from Euronext Amsterdam—UMG Immediately Shuts It Down

Photo Credit: Euronext FX

Israeli soccer fans were assaulted in a series of antisemitic attacks from young people specifically targeted Jewish people. Five people were treated at hospitals, while dozens more were arrested for participating in the attacks. Now, billionaire Bill Ackman says Pershing Square will seek removal from Euronext Amsterdam and is pressuring Universal Music Group to do the same.

Amsterdam banned demonstrations over the weekend after the antisemitic attacks occurred on Friday, with the Amsterdam mayor calling the orchestrators “antisemitic hit-and-run squads.” Mayor Femke Halsema said Maccabi Tel Aviv soccer fans were “attacked, abused, and pelted” with fireworks around the city—forcing riot police to intervene and protect them from further abuse.

Videos of the attacks went viral on social media, showcasing many attackers shouting anti-Israeli slurs. Antisemitic incidents in the Netherlands have surged since the October 7 Hamas attack on a peaceful music festival and other areas. Many Jewish organizations have reported receiving threats and hate mail. Israel’s Prime Minister Benjamin Netanyahu’s government sent planes to the Netherlands to bring those soccer fans home.

Now, Bill Ackman says he is going to seek approval from the board of Pershing Square Holdings (his family owns 23%) to eliminate the Euronext listing. Ackman says he is also seeking to persuade UMG to jump ship from Amsterdam as well.

“I have also begun the conversation with UMG (on whose board I sit) which is domiciled in Amsterdam as well as listed there, about moving its domicile and its listings to the United States, which will offer similar as well as other highly material benefits,” Ackman said in a statement posted on X/Twitter.

“Pershing Square has a contractual right to cause UMG to be listed in the United States. We will exercise this right and achieve a US listing for UMG no latter than sometime next year.”

“UMG trades at a large discount to its intrinsic value with limited liquidity in significant part due to it not having its primary listing on the NYSE or NASDAQ and not being eligible for S&P 500 and other index inclusion. We are going to fix this. Now is a good and appropriate time to do so.”

UMG has been listed on the Euronext Amsterdam exchange since 2021 and Pershing Square owns 10.25% of UMG’s stock. A UMG spokesperson confirms no one from UMG spoke with Ackman before his statement.

“As disclosed in UMG’s listing prospectus, Persing has the right to reqest a listing in the U.S. subject to a Pershing entity selling at least $500 million in UMG shares as part of the listing. Pershing does not have any right to require UMG to become a US domiciled company or delist from Euronext Amsterdam.”

“While the company will endeavor in good faith to comply with its contractual obligations with respect to undertaking the process of a US listing at the request of Pershing, any actions or decisions beyond those necessary to comply {including any decisions to change the domicile of the company) will be based on an analysis taking into account what is value maximizing and in the best interests of all shareholders of the company.”

Link to the source article – https://www.digitalmusicnews.com/2024/11/10/pershing-square-removal-from-euronext/

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