Bill Ackman Proposes Delisting Pershing Square Holdings from Euronext Amsterdam, Advocates for UMG’s US Listing

Ackman’s rationale for delisting Pershing Square from the Euronext Amsterdam exchange stems from the fact that the company’s second listing on the London Stock Exchange (LSE) now accounts for more than 90% of its trading volume. This dominance in LSE trading, coupled with recent events in Amsterdam, has led Ackman to believe that it is both a business-savvy and morally sound decision to concentrate the company’s listing on a single exchange.

“Events in Amsterdam during the last 24 hours provide an appropriate tipping point for this conclusion,” Ackman stated, alluding to concerns regarding the treatment of tourists and minority populations in the city. This, he believes, adds a moral imperative to the business case for leaving the Euronext Amsterdam exchange.

By focusing solely on the LSE, Ackman argues that Pershing Square can achieve multiple benefits, including cost savings, improved liquidity for shareholders, and greater overall efficiency. “Concentrating the listing on one exchange, the LSE, and leaving a jurisdiction that fails to protect its tourists and minority populations combine both good business and moral principles,” he noted.

Ackman’s ambitions extend beyond Pershing Square Holdings. As a member of the board of Universal Music Group (UMG), which is domiciled and listed in Amsterdam, he has initiated conversations about moving UMG’s domicile and listing to the United States. He asserts that such a move would offer significant benefits, including increased liquidity and exposure to a broader investor base. Ackman highlighted that Pershing Square has a contractual right to facilitate UMG’s US listing and confirmed that this will be executed no later than 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,” Ackman emphasized.

In summary, Ackman’s proposals represent a significant shift for both Pershing Square Holdings and Universal Music Group. He is positioning these companies for greater operational focus and increased market presence, while aligning his decisions with ethical considerations. The financial world will be watching closely as these plans unfold.