EMI bought in £3.2bn takeover deal

[musicfan37]

I saw this at another site and thought you might be interested.

Monday May 21, 2007


Breaking news: EMI bought in £3.2bn takeover deal

EMI Group has agreed to be bought by private equity group Terra Firma in a £3.2bn deal.

The reported deal, which includes debt, amounts to 265p a share and comes just two weeks after three US private equity firms Cerberus, Fortress and One Equity were linked with moves on EMI.

The acquisition will be made through Maltby, a newly incorporated company formed at the direction of Terra Firma for the purpose of making the offer. The deal values EMI "on an enterprise value basis at approximately £3.2bn, with the entire issued share capital amounting to around £2.4bn.

EMI Chairman of EMI John Gildersleeve adds, "The global music industry is undergoing significant change and, whilst EMI is confident in its ability to deliver its recently announced restructuring plans, significant uncertainty exists as to the timing and extent of future market developments. The EMI board received a number of proposals from several different parties. Terra Firma’s offer is the most attractive proposal received and delivers cash now, without regulatory uncertainty and with the minimum of operational risk to the company."
Terra Firma Capital Partners Limited Chief Executive Officer Guy Hands says in a statement, "Terra Firma is delighted that the Board has decided to recommend its Offer. Terra Firma’s objective is to build on EMI’s current position as one of the world’s leading music companies and accelerate the development of its digital and online strategy to fully exploit this long-term growth opportunity."