Statement from Universal Music Group N.V.

Rhea-AI Summary

Universal Music Group (UNVGY) has announced that Pershing Square has exercised its rights under their Registration Rights Agreement to request a secondary listing and offering of UMG shares in the United States. Pershing has waived the standard 120-day filing requirement, and UMG will work to launch an underwritten offering for Pershing's shares by September 15, 2025, subject to regulatory approval and market conditions.

The company stated that any decisions beyond its contractual obligations under the Registration Rights Agreement will be determined by UMG's Board of Directors, based on what maximizes value and serves the best interests of all shareholders.

Positive

• Potential expansion of investor base through US listing
• Enhanced market visibility and trading liquidity through dual listing

Negative

• Potential selling pressure from Pershing Square's share offering
• Additional compliance and regulatory costs associated with US listing

HILVERSUM, Netherlands, Jan. 15, 2025 /PRNewswire/ -- Further to UMG's statement of 9 November 2024, UMG announced today that Pershing Square (together with certain of its affiliates, "Pershing") has exercised its right under the previously disclosed Registration Rights Agreement between UMG and Pershing to request an offering and secondary listing of UMG in the U.S.  Pershing has waived the 120-day filing requirement and, in line with its contractual obligations, UMG will use commercially reasonable efforts to launch an underwritten offering for the sale of certain shares owned by Pershing by September 15, 2025, subject to regulatory approval and market conditions.  Any actions or decisions of UMG beyond those necessary to comply with its contractual obligations under the Registration Rights Agreement will be determined by the Board of Directors of UMG based on an analysis taking into account what is value maximizing and in the best interests of all the shareholders of UMG.

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SOURCE Universal Music Group N.V.

FAQ

When will Universal Music Group (UNVGY) complete its US listing?

UMG aims to complete the listing by September 15, 2025, subject to regulatory approval and market conditions.

What is the purpose of UNVGY's secondary listing in the US?

The secondary listing is being initiated at Pershing Square's request under their Registration Rights Agreement to facilitate the sale of Pershing's shares in the US market.

How will Pershing Square's share offering affect UNVGY stock?

The offering could create temporary selling pressure on UNVGY stock, though the exact impact will depend on market conditions and the size of the offering.

Will UNVGY maintain its current listing while adding a US listing?

Yes, this will be a secondary listing, meaning UNVGY will maintain its current listing while adding a US listing.