Chinese streaming platform Tencent Music Entertainment grew its stake in the world’s largest music company, Universal Music Group (UMG), by picking up a direct 2% equity holding worth $327 million in March, the company said on Tuesday (May 13).

While it did not identify the seller — described in Tuesday’s filings only as “one of our associates” — Pershing Square sold 50 million shares of UMG on March 13, raising about $1.3 billion, according to filings and research reports. Tencent Music and Pershing Square did not immediately respond to requests for comment.

The news means that Tencent Music and UMG each own notable stakes in each other’s companies, as UMG owns a 0.79% stake in TME as of Dec. 31 that’s currently worth $181.2 million.

Tencent Music has been an investor in UMG since March 2020, when it joined a consortium of investors led by its parent company, Tencent Holdings. That consortium accumulated a 20% stake in UMG from UMG’s parent company, Vivendi S.A., between 2020 and 2021, of which Tencent Music owned a 10% share, according to filings.

This March, that consortium “completed a transfer of the UMG shares held by the consortium to its members,” which resulted in Tencent Music acquiring a direct 2% equity interest in UMG, according to its annual report.

Tencent Music, which reported first-quarter revenue of 7.36 billion Chinese yuan ($1.01 billion) on Tuesday, recognized “other gains” worth 2.44 billion Chinese yuan (US$336 million), of which the UMG stock comprised 2.37 billion Chinese yuan (US$327 million), according to filings.

Pershing Square has been an investor in UMG since 2021, and though the mid-March stock sale reduced its stake in UMG to 4.9% from 7.6%, the music company remains the hedge fund’s largest single holding, comprising 17% of its capital.

The sale came ahead of Pershing Square’s plan to register its UMG shares in the United States in September. Pershing Square head and UMG board member Bill Ackman has advocated for the company to move its primary listing from the Euronext Amsterdam stock exchange to a U.S.-based exchange, saying it would add value for the company.